OAR 836-051-0540
General Rules and Prohibitions

(1)

An illustration used in the sale of a life insurance policy shall satisfy the applicable requirements of OAR 836-051-0500 (Purpose; Authority) to 836-051-0600 (Trade Practice Regulation), be clearly labeled “life insurance illustration” and contain the following basic information:

(a)

Name of insurer;

(b)

Name and business address of the insurance producer, if any;

(c)

Name, age and sex of proposed insured, except when a composite illustration is permitted under OAR 836-051-0500 (Purpose; Authority) to 836-051-0600 (Trade Practice Regulation);

(d)

Underwriting or rating classification upon which the illustration is based;

(e)

Generic name of policy, the insurer product name, if different, and form number;

(f)

Initial death benefit; and

(g)

Dividend option election or application of non-guaranteed elements, if applicable.

(2)

When using an illustration in the sale of a life insurance policy, neither an insurer nor its insurance producer shall:

(a)

Represent the policy as anything other than a life insurance policy;

(b)

Use or describe non-guaranteed elements in a manner that is misleading or has the capacity or tendency to mislead;

(c)

State or imply that the payment or amount of non-guaranteed elements is guaranteed;

(d)

Use an illustration that does not comply with the requirements of OAR 836-051-0500 (Purpose; Authority) to 836-051-0600 (Trade Practice Regulation);

(e)

Use an illustration that at any policy duration depicts policy performance more favorable to the policy owner than that produced by the illustrated scale of the insurer whose policy is being illustrated;

(f)

Provide an applicant with an incomplete illustration;

(g)

Represent in any way that premium payments will not be required for each year of the policy in order to maintain the illustrated death benefits, unless that is the fact;

(h)

Use the term “vanish” or “vanishing premium,” or a similar term that implies the policy becomes paid up, to describe a plan for using non-guaranteed elements to pay a portion of future premiums;

(i)

Except for policies that can never develop nonforfeiture values, use an illustration that is “lapse-supported”; or

(j)

Use an illustration that is not “self-supporting.”

(3)

If an interest rate used to determine the illustrated non-guaranteed elements is shown, it shall not be greater than the earned interest rate underlying the disciplined current scale.

Source: Rule 836-051-0540 — General Rules and Prohibitions, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=836-051-0540.

836‑051‑0005
Statutory Authority 836‑051‑0010
Definitions 836‑051‑0015
Disclosure Requirements 836‑051‑0020
General Requirements 836‑051‑0030
Purpose and Applicability 836‑051‑0032
Definition 836‑051‑0034
Exemptions 836‑051‑0036
Disclosure Requirements 836‑051‑0038
Insurer Duties 836‑051‑0040
Trade Practice Regulation 836‑051‑0101
Statutory Authority 836‑051‑0106
Life Insurance Valuation and Nonforfeiture Standards 836‑051‑0110
Life Insurance Nonforfeiture Standards for Men and Women 836‑051‑0115
Smoker/Nonsmoker Mortality Tables 836‑051‑0150
Individual Deferred Annuities Surrender Charge 836‑051‑0153
Limitations on Surrender Charge Scales 836‑051‑0156
Fair Surrender Charges 836‑051‑0200
Authority 836‑051‑0210
Purpose 836‑051‑0220
Definitions 836‑051‑0230
Individual Annuity or Pure Endowment Contracts 836‑051‑0235
Application of the 2012 IAR Mortality Table 836‑051‑0240
Group Annuity or Pure Endowment Contracts 836‑051‑0250
Application of the 1994 GAR Table 836‑051‑0300
Statutory Authority 836‑051‑0310
Acknowledgement of Concurrence for Payout from Assignee or Beneficiary 836‑051‑0320
Payment Options 836‑051‑0330
Disclosure 836‑051‑0340
Exercise of the Accelerated Benefit 836‑051‑0350
Waiver of Premium 836‑051‑0360
Discrimination 836‑051‑0370
Minimum Benefit Standards 836‑051‑0380
Actuarial Disclosure and Reserves 836‑051‑0500
Purpose 836‑051‑0510
Applicability and Scope 836‑051‑0520
Definitions 836‑051‑0530
Policies to Be Illustrated 836‑051‑0540
General Rules and Prohibitions 836‑051‑0550
Standards for Basic Illustrations 836‑051‑0560
Standards for Supplemental Illustrations 836‑051‑0570
Delivery of Illustration and Record Retention 836‑051‑0580
Annual Report 836‑051‑0590
Annual Certifications 836‑051‑0600
Trade Practice Regulation 836‑051‑0700
Authorization, Genetic Testing 836‑051‑0750
Purpose 836‑051‑0755
Definitions 836‑051‑0760
Minimum Valuation Mortality Standards 836‑051‑0765
Minimum Valuation Interest Rate Standards 836‑051‑0770
Minimum Valuation Method Standards 836‑051‑0775
Transition Rules 836‑051‑0900
Purpose 836‑051‑0905
Applicability and Scope 836‑051‑0910
Definitions 836‑051‑0915
Standards for the Disclosure Document and Buyer’s Guide 836‑051‑0920
Report to Contract Owners 836‑051‑0925
Trade Practice Regulation
Last Updated

Jun. 8, 2021

Rule 836-051-0540’s source at or​.us