Section 0780-01-25-.04 - UNDERWRITING PRINCIPLES(1) The maximum amount of any financing arrangement which may be executed in connection with such a transaction should be in accordance with reasonable and sound underwriting and business practices. (Note: A financed program should not be sold to an undergraduate on a basis where premiums would come due prior to the anticipated date of graduation by the insured.)(2) In case a request is made by an insured to cancel such a policy and premium arrangement, this Department will expect the cooperation of the company and its agents in bringing such matter to a satisfactory conclusion as expeditiously as possible.(3) Any cash values shown at the time of presentation should be based on the face amount of the policy being offered and not for a larger policy. For example, if a $10,000 policy is being presented, the values for such $10,000 policy and not for a $50,000 or $75,000 program should be given. Such a presentation tends to lead to misunderstanding on the part of the insured when he receives his $10,000 policy and the cash values are less than what he was shown at the time of sale. The effect of payment of any pure endowment benefits on subsequent cash values shall be pointed out.Tenn. Comp. R. & Regs. 0780-01-25-.04
Original rule certified June 10, 1974.Authority: T. C.A. § 56-6-127.