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)(h)1. 1. The disciplined current scale; or

Ins 2.17(3)(h)2. 2. The currently payable scale.

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)1. 1. Fully allocated expenses.

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.

Ins 2.17(3)(o)3. 3. Group underwriting or simplified underwriting is used.

Ins 2.17(3)(p) (p) “Policy owner” means the owner named in an individual policy or the certificate holder in the case of a group policy.

Ins 2.17(3)(q) (q) “Premium outlay” means the amount of premium assumed to be paid by the policy owner or other premium payer out-of-pocket.

Ins 2.17(3)(r) (r) “Self-supporting illustration” means an illustration of a policy form for which it can be demonstrated that, when using experience assumptions underlying the disciplined current scale, for all illustrated points in time on or after the fifteenth policy anniversary or the twentieth policy anniversary for second-or-later-to-die policies or upon policy expiration if sooner, the accumulated value of all policy cash flows equals or exceeds the total policy owner value available. For this purpose, policy owner value includes cash surrender values and any other illustrated benefit amounts available at the policy owner’s election.

Ins 2.17(3)(s) (s) “Supplemental illustration” means an illustration furnished in addition to a basic illustration.

Ins 2.17(4) (4) Policies to be illustrated.

Ins 2.17(4)(a) (a) Each insurer marketing policies to which this section is applicable shall notify the commissioner whether a policy form is to be marketed with or without an illustration. For all policy forms being actively marketed on January 1, 1998, the insurer shall identify in writing those forms and whether or not an illustration will be used with them. For policy forms filed after January 1, 1998, the identification shall be made at the time of filing. Any previous identification may be changed by notice to the commissioner.

Ins 2.17(4)(b) (b) If an insurer identifies a policy form as one to be marketed without an illustration, any use of an illustration for any policy using that form prior to the first anniversary is prohibited.

Ins 2.17(4)(c) (c) If a policy form is identified by the insurer as one to be marketed with an illustration, a basic illustration prepared and delivered in accordance with this section is required, except that a basic illustration need not be provided to individual members of a group or to individuals insured under multiple lives coverage issued to a single applicant unless the coverage is marketed to these individuals. The illustration furnished an applicant for a group life insurance policy or policies issued to a single applicant on multiple lives may be either an individual or composite illustration representative of the coverage on the lives of members of the group or the multiple lives covered.

Ins 2.17(4)(d) (d) Potential enrollees of non-term group life subject to this regulation shall be furnished a quotation with the enrollment materials. The quotation shall show potential policy values for sample ages and policy years on a guaranteed and non-guaranteed basis appropriate to the group and the coverage. This quotation shall not be considered an illustration for purposes of this section, but all information provided shall be consistent with the illustrated scale. A basic illustration shall be provided at delivery of the certificate to enrollees for non-term group life who enroll for more than the minimum premium necessary to provide pure death benefit protection. In addition, the insurer shall make a basic illustration available to any non-term group life enrollee who requests it.

Ins 2.17(5) (5) General rules and prohibitions.

Ins 2.17(5)(a) (a) An illustration used in the sale of a life insurance policy shall satisfy the applicable requirements of this section, be clearly labeled “life insurance illustration” and contain all of the following basic information: