NAC686A.473. Contents of narrative summary in basic illustration.

A basic illustration must contain a narrative summary which must include, without limitation, each of the following:

     1. A brief description of the policy being illustrated, including, without limitation, a statement that it is a policy of life insurance.

     2. A brief description of the premium outlay or contract premium for the policy. If a policy does not require the payment of a contract premium, the illustration must show the premium outlay that must be paid to guarantee coverage for the term of the contract, subject to maximum premiums allowable to qualify as a policy of life insurance under the applicable provisions of the Internal Revenue Code.

     3. A brief description of any guaranteed or nonguaranteed elements, policy features, riders or options that are shown in the basic illustration and the impact they may have on the benefits and values of the policy.

     4. An identification and a brief definition of column headings and key terms used in the illustration.

     5. A statement in substantially the following form:

This illustration assumes that the currently illustrated nonguaranteed elements will continue unchanged for all of the years shown. This is not likely to occur and actual results may be more or less favorable than those shown.

     (Added to NAC by Comm’r of Insurance by R089-97, eff. 1-14-98)