Utah Admin. Code R590-177-8 - Delivery of Illustration and Record Retention

(1)

(a) If a basic illustration is used in the sale of a life insurance policy and the policy is applied for as illustrated, a copy of that illustration, signed in accordance with this rule, shall be:

(i) submitted to the insurer at the time of policy application; and

(ii) provided to the applicant.

(b) If the policy issued is not as applied for, a revised basic illustration conforming to the policy as issued shall:

(i) be sent with the policy;

(ii) conform to the requirements of this rule;

(iii) be labeled "Revised Illustration"; and

(iv) be signed and dated by the applicant or policy owner and producer or other authorized representative of the insurer no later than the time the policy is delivered; and

(c) be provided to the insurer and the policy owner after being signed and dated.

(2)

(a) If no illustration is used by an insurance producer or other authorized representative in the sale of a life insurance policy or if the policy applied for is not as illustrated, the producer or representative shall certify to that effect in writing on a form provided by the insurer.

(i) The form shall include an acknowledgement from the applicant that:

(A) no illustration conforming to the policy applied for was provided; and

(B) an illustration conforming to the policy as issued will be provided no later than at the time of policy delivery.

(ii) The form shall be submitted to the insurer at the time of policy application.

(b) If the policy is issued, a basic illustration conforming to the policy as issued shall be sent with the policy and signed no later than the time the policy is delivered, and a copy shall be provided to the insurer and the policy owner.

(3) If the basic or revised illustration is sent to the applicant or policy owner by mail from the insurer, it shall include instructions for the applicant or policy owner to sign the duplicate copy of the numeric summary page of the illustration for the policy issued and return the signed copy to the insurer.

(a) The insurer's obligation is satisfied if it can demonstrate that it has made a diligent effort to secure a signed copy of the numeric summary page.

(b) The requirement to make a diligent effort is satisfied if the insurer includes in the mailing a self-addressed postage prepaid envelope with instructions for the return of the signed numeric summary page.

(4)

(a) A copy of any basic or revised basic illustration, signed as applicable, shall be retained by the insurer until three years after the policy is no longer in force, along with any certification that either:

(i) no illustration was used; or

(ii) the policy applied for was not as illustrated.

(b) A copy of a basic or revised basic illustration need not be retained if no policy is issued.

Notes

Utah Admin. Code R590-177-8

Amended by Utah State Bulletin Number 2023-03, effective 1/24/2023