Ins 2.17(1)(1) Purpose. This section provides rules for life insurance policy illustrations that will protect consumers and foster consumer education. This section provides illustration formats, prescribes standards to be followed when illustrations are used, and specifies the disclosures that are required in connection with illustrations. The goals of this rule are to ensure that illustrations do not mislead purchasers of life insurance and to make illustrations more understandable. Insurers will, as far as possible, eliminate the use of footnotes and caveats and define terms used in the illustration in language that would be understood by a typical person within the segment of the public to which the illustration is directed. The requirements of this section are in addition to and not a substitute for the requirements set forth in ss. Ins 2.14 and 2.16. Ins 2.17(2)(2) Scope. This section applies to all group and individual life insurance policies and certificates except: Ins 2.17(2)(d)(d) Life insurance policies with no illustrated death benefits on any individual exceeding $10,000. Ins 2.17(3)(a)(a) “Actuarial standards board” means the board established by the American academy of actuaries to develop and promulgate standards of actuarial practice. Ins 2.17(3)(b)(b) “Basic illustration” means a ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and non-guaranteed elements. Ins 2.17(3)(c)(c) “Contract premium” means the gross premium that is required to be paid under a fixed premium policy, including the premium for a rider for which benefits are shown in the illustration. Ins 2.17(3)(d)(d) “Currently payable scale” means a scale of non-guaranteed elements in effect for a policy form as of the preparation date of the illustration or declared to become effective within the next 95 days. Ins 2.17(3)(e)(e) “Disciplined current scale” means a scale of non-guaranteed elements that is reasonably based on actual recent historical experience, as certified annually by an illustration actuary designated by the insurer. Ins 2.17(3)(f)(f) “Generic name” means a short title descriptive of the policy being illustrated such as “whole life,” “term life” or “flexible premium adjustable life.” Ins 2.17(3)(g)(g) “Guaranteed elements” means the premiums, benefits, values, credits or charges under a policy of life insurance that are guaranteed and determined at issue. Ins 2.17(3)(h)(h) “Illustrated scale” means a scale of non-guaranteed elements currently being illustrated that is not more favorable to the policy owner than the lesser of: Ins 2.17(3)(i)(i) “Illustration” means a presentation or depiction that includes non-guaranteed elements of a policy of life insurance over a period of years and is one of the three illustrations described in pars. (b), (k), and (s). Ins 2.17(3)(j)(j) “Illustration actuary” means an actuary meeting the requirements of sub. (10). Ins 2.17(3)(k)(k) “In force illustration” means an illustration furnished at any time after the policy that it depicts has been in force. Ins 2.17(3)(L)(L) “Lapse-supported illustration” means an illustration of a policy form failing the test of self-supporting as defined in this section, under a modified persistency rate assumption using persistency rates underlying the disciplined current scale for the first 5 years and 100% policy persistency thereafter. Ins 2.17(3)(m)(m) “Minimum assumed expenses” means the minimum expenses that may be used in the calculation of the disciplined current scale for a policy form. The insurer may choose to designate each year the method of determining assumed expenses for all policy forms from the following: Ins 2.17(3)(m)2.2. Marginal expenses may be used only if greater than a generally recognized expense table. If no generally recognized expense table is approved, fully allocated expenses must be used. Ins 2.17(3)(m)3.3. A generally recognized expense table based on fully allocated expenses representing a significant portion of insurance companies and approved by the commissioner. Ins 2.17(3)(n)(n) “Non-guaranteed elements” means the premiums, benefits, values, credits or charges under a policy of life insurance that are not guaranteed or not determined at issue. Ins 2.17(3)(o)(o) “Non-term group life” means a group policy or individual policies of life insurance issued to members of an employer group or other permitted group under all of the following conditions: Ins 2.17(3)(o)1.1. Every plan of coverage was selected by the employer or other group representative. Ins 2.17(3)(o)2.2. Some portion of the premium is paid by the group or through payroll deduction.