02-031 C.M.R. ch. 240, § 6 - General rules

Current through 2022-14, April 6, 2022

(A) Each insurer shall maintain at its home office or principal office a complete file containing one copy of each document used by it authorized pursuant to this Rule. The file shall contain one copy of each authorized form for a period of three years following the date of its last authorized use.
(B) A producer shall inform the prospective purchaser, prior to commencing a life insurance sales presentation, that he or she is acting as a life insurance producer and inform the prospective purchaser of the full name of the insurance company which he or she is representing. In sales situations in which a producer is not involved, the insurer shall identify its full name.
(C) Terms such as financial planner, investment advisor, financial consultant, or financial counseling shall not be used in such a way as to imply that the insurance producer is primarily engaged in an advisory business in which compensation is unrelated to sales unless such is actually the case.
(D) Any reference to policy dividends must include a statement that dividends are not guaranteed.
(E) A system or presentation which does not recognize the time value of money through the use of appropriate interest adjustments shall not be used for comparing the cost of two or more life insurance policies. Such a system may be used for the purpose of demonstrating the cash-flow pattern of a policy if such presentation is accompanied by a statement disclosing that the presentation does not recognize that, because of interest, a dollar in the future has less value than a dollar today.
(F) A statement regarding the use of the Life Insurance Cost Indexes shall include an explanation to the effect that the indexes are useful only for the comparison of the relative costs of two or more similar policies.
(G) For the purposes of this Rule, the annual premium for a basic policy or rider, for which the company reserves the right to change the premium, shall be the maximum annual premium.

Notes

02-031 C.M.R. ch. 240, § 6

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