Life Insurance Basics
An illustration shows a bonus credited in the twentieth policy year. When is that permitted?
Answer and explanation
Answer: C. Regulation 74 bars an illustration from showing a bonus, additional amount or cost reduction in a given year unless it is guaranteed in the contract. A record of past payment, a label, or an oral explanation does not satisfy that requirement.Source: New York Reg. 74, 11 NYCRR 53-3.2 — 11 NYCRR 53-3.2
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