State RegulationsNY specificDifficulty 2/5
Under Reg 74, when a producer uses a basic illustration in the sale of a life insurance policy and the policy is applied for as illustrated, the producer must:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under Reg 74 (11 NYCRR Part 53-3), when a basic illustration is used by a producer in the sale of a life insurance policy and the policy is applied for as illustrated, a copy of the illustration, signed as required by the regulation, must be submitted to the insurer at the time the policy application is made, and a copy must be provided to the applicant. In addition, a basic illustration conforming to the policy as issued must be signed no later than the time the policy is delivered.
Why the other options are wrong
- A) Illustrations are not filed with the Superintendent as a condition of the application; the signed copy goes to the insurer with the application.
- B) Waiting until after issuance is too late; the signed illustration accompanies the application when the policy is applied for as illustrated.
- C) The illustration is not merely an on-request document; it must be delivered as part of the regulated sales process.
Memory hook
Applied-for-as-illustrated: the signed illustration rides with the application; insurer and applicant each get a copy.