N.M. Admin. Code § 13.9.14.11 - PROHIBITED PRACTICES

When using an illustration in the sale of a life insurance policy, an insurer or its producers or other authorized representatives shall not:

A. represent the policy as anything other than a life insurance policy;

B. use or describe non-guaranteed elements in a manner that is misleading or has the capacity or tendency to mislead;

C. state or imply that the payment or amount of non-guaranteed elements is guaranteed;

D. use an illustration that does not comply with the requirements of this rule;

E. use an illustration that at any policy duration depicts policy performance more favorable to the policy owner than that produced by the illustrated scale of the insurer whose policy is being illustrated;

F. provide an applicant with an incomplete illustration;

G. represent in any way that premium payments will not be required for each year of the policy in order to maintain the illustrated death benefits, unless that is the fact;

H. use the term "vanish" or "vanishing premium," or a similar term that implies the policy becomes paid up, to describe a plan for using non-guaranteed elements to pay a portion of future premiums;

I. except for policies that can never develop nonforfeiture values, use an illustration that is lapse-supported; or

J. use an illustration that is not self-supporting.

Notes

N.M. Admin. Code § 13.9.14.11

10/1/98; Recompiled 11/30/01