State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under California's illustration regulations, what must an agent do when presenting a life insurance policy illustration to an applicant?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
California's life insurance illustration rules (CIC Sections 10509.950 through 10509.965) require that when a policy is sold with an illustration, the illustration must be presented to the applicant before the policy is issued, and it must be signed and dated by both the applicant and the agent. A signed copy is returned to the insurer, and the applicant keeps a copy. The illustration must clearly state that it is not part of the contract and must distinguish guaranteed values from nonguaranteed projections, so the applicant is not misled about future dividends or credited interest.
Why the other options are wrong
- A) The applicant, not just the Commissioner, must receive a copy; the regulations are designed to put the disclosure into the applicant's hands.
- B) A verbal summary is insufficient; the illustration must be in writing, signed and dated by the applicant and agent.
- D) The illustration must be presented at point of sale, before the policy is issued, so the buyer can compare before committing.
Memory hook
Illustration: signed, dated, labeled, filed — before the policy ships.