Insurance Regulation 113 - Life Insurance Illustrations

Regulation Authority:

R.I.Gen. Laws §§ 27-29-1 et seq., 42-14-17

Purpose and Reason:

The Department of Business Regulation (“Department”) hereby adopts amendments to Insurance Regulation 113 Life Insurance Illustrations effective September 30, 2009 and makes this statement in accordance with R.I. Gen. Laws § 42-35-2.3. The Department makes these amendments in order to to provide rules for life insurance policy illustrations that will protect consumers and foster consumer education. The regulation provides illustration formats, prescribes standards to be followed when illustrations are used, and specifies the disclosures that are required in connection with illustrations. The goals of this regulation are to ensure that illustrations do not mislead purchasers of life insurance and to make illustrations more understandable. Insurers will, as far as possible, eliminate the use of footnotes and caveats and define terms used in the illustration in language that would be understood by a typical person within the segment of the public to which the illustration is directed. The regulation is based upon the National Association of Insurance Commissioners Model with the goal of providing continuity with other states. There are no differences between the text of the proposed rule as published in accordance with R.I. Gen. Laws § 42-35-3 and the rule as adopted.