State RegulationsTX specificDifficulty 2/5
A basic illustration is presented to a Texas applicant at the time the application is taken. Under 28 TAC 21.2201-.2214, what must be done with it?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under the Texas illustration rule at 28 TAC 21.2201-.2214, when a basic illustration is used in a sale, the agent and the applicant (or the policyowner, if the illustration is presented at delivery) must sign and date it, and a copy must be left with the customer. The signature requirement creates a contemporaneous record of exactly what was shown at the point of sale, which is what makes later disputes about projections resolvable.
Why the other options are wrong
- B) A copy must be provided to the applicant; keeping the illustration only in the agency file does not satisfy 28 TAC 21.2201-.2214.
- C) The signing requirement applies whenever a basic illustration is used, not only when the illustrated premium exceeds some other figure.
- D) The signing-and-copy requirement does not depend on the manner in which the policy is delivered.
Memory hook
Used an illustration? Sign it, date it, hand over a copy.