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
The following state regulations pages link to this page.
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.