Utah Admin. Code R590-79-5 - General Requirements

(1) Each insurer shall maintain at its home office or principal office, a complete and accurate record of each document provided to the policyholder under this rule.

(2)

(a) A producer shall inform a prospective purchaser, prior to commencing a life insurance sales presentation, that the producer is acting as a life insurance producer .

(b) A producer shall inform the prospective purchaser of the full name of the insurance company the producer is representing .

(c) If a producer is not involved in the sale, the insurer shall provide its full name to the prospective purchaser.

(d) A presentation commences with an initial contact with a prospective purchaser in person, by telephone, by electronic communication, or by way of printed materials, particularly where rates or values are quoted or when policy or contract representations are made.

(3) A producer shall not use terms such as financial planner, investment advisor, financial consultant, or financial counseling :

(a) unless properly licensed if required; or

(b) to imply that the producer is generally engaged in an advisory business where compensation is unrelated to sales unless such is the case and is represented by way of a required disclosure.

(4) Any reference to a nonguaranteed element shall include:

(a) a statement that the item is not guaranteed and is based on the company's current scale of nonguaranteed elements ;

(b) a statement that a nonguaranteed element may be reduced by the existence of a policy loan shall be included in any reference to a nonguaranteed element ; and

(c) a presentation or depiction of a policy issued on or after January 1, 1997, that includes nonguaranteed elements over a period of years shall be governed by Rule R590-177.

(5) The policy summary, the illustration , and any other sales materials must be complete, consistent, and not misleading.

(6) If the policy will lapse under the guaranteed assumptions unless a premium higher than the planned premium is paid, that fact must be disclosed and the date, policy duration, or attained age of lapse must be disclosed in the policy summary and any periodic report.

Notes

Utah Admin. Code R590-79-5

Amended by Utah State Bulletin Number 2021-24, effective 12/9/2021