Policy Illustration Requirements: The California Department of Insurance requires that life insurance policy illustrations include several key pieces of information to ensure clarity and understanding for the insured.
Name of the Insured: Each policy illustration must clearly state the name of the insured, as it is crucial for identifying the specific policyholder.
Page Number of Each Page: This requirement ensures that the policyholder can follow the document correctly and verify that all pages are present.
Relationship of Each Page to the Total Number of Pages: This helps the insured understand the structure of the document and ensures that all parts of the illustration are accounted for.
Benefits and Values Guarantee Statement: Not all benefits and values in a policy illustration are guaranteed; some are based on assumptions and projections. Therefore, a blanket statement guaranteeing all benefits and values would be misleading and is not a requirement.References: California Insurance Code Sections 10509.950-10509.970 outline the requirements for life insurance policy illustrations.