S.D. Admin. R. 20:06:10:04.01

Current through Register Vol. 51, page 67, December 16, 2024

Section 20:06:10:04.01 - Form and content of life insurance advertisements and solicitations

In addition to the information required in § 20:06:10:04, the form and content requirements of life insurance advertisements and solicitations are as follows:

(1) The terms "investment plan," "founder's plan," "charter plan," "expansion plan," "profit," "profit sharing," "interest plan," "savings," "savings plan," "vanishing," "vanishing premiums," "vanishing payments," or other similar terms may not be used in connection with a life insurance policy in a context or under such circumstances or conditions that they mislead or tend to mislead a purchaser or prospective purchaser of the policy into believing that the purchaser or prospective purchaser will receive, or that it is possible that the purchaser or prospective purchaser will receive, some benefit not available to other persons or something other than a policy;

(2) The terms "financial planner," "investment advisor," "financial consultant," or "financial counseling," or other similar terms may not be used to imply that an insurance company or its agents are engaged in an advisory business in which compensation is unrelated to sales unless that is actually the case;

(3) A reference to policy dividends must include a statement that dividends are not guaranteed;

(4) An advertisement or solicitation which does not recognize the time value of money through the use of appropriate interest adjustments may not be used for comparing the cost of two or more life insurance policies. An advertisement or solicitation which does not recognize the time value of money may be used for the purpose of demonstrating the cash flow pattern of a policy if the presentation is accompanied by a clear and prominent statement disclosing that the presentation does not recognize that a dollar beginning to earn interest at some time in the future will have less value than a dollar beginning to earn interest today;

(5) If life insurance cost indexes are used, an explanation must be included to the effect that the indexes are useful only for the comparison of the relative costs of similar policies. A life insurance cost index which gives dividends or an equivalent level annual dividend must be accompanied by a clear and prominent statement disclosing that it is based on the company's current dividend scale and is not guaranteed; and

(6) A reference to a policy with variable premiums must include a clear and prominent statement disclosing the maximum annual premium and the minimum annual premium.

S.D. Admin. R. 20:06:10:04.01

15 SDR 143, effective 3/29/1989; 27 SDR 54, effective 12/4/2000; 38 SDR 116, effective 1/10/2012.

General Authority: SDCL 58-33A-7.

Law Implemented: SDCL 58-33-5, 58-33-6, 58-33-7, 58-33A-8, 58-33A-10.