Life Insurance Basics
Which term does New York's illustration rule prohibit in describing the application of nonguaranteed elements?
Answer and explanation
Answer: B. Regulation 74 forbids vanish, vanishing premium and similar language implying the policy becomes paid up, because nonguaranteed elements may not perform as illustrated. Current scale and nonguaranteed element are the accurate terms the rule expects to see.Source: New York Reg. 74, 11 NYCRR 53-3.2 — 11 NYCRR 53-3.2
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