Section 21.2209 - Delivery of Illustration and Record Retention(a) Illustration delivery provisions. An illustration or revised illustration shall be delivered by the insurer as set out in paragraphs (1)-(5) of this subsection. (1) Basic illustration delivery. If a basic illustration is used by an insurance producer or other authorized representative of the insurer in the sale of a life insurance policy, and the policy is applied for as illustrated, a copy of that illustration signed in accordance with this rule shall be submitted to the insurer at the time of policy application. A copy also shall be provided to the applicant.(2) Revised illustration delivery. If the policy is issued other than as applied for, a revised basic illustration conforming to the policy as issued shall be sent with the policy. The revised illustration shall conform to the requirements of this subchapter, shall be labeled "Revised Illustration," and shall be signed and dated by the applicant or policy owner and insurance producer or other authorized representative of the insurer no later than the time the policy is delivered. A copy shall be provided to the insurer and the policy owner.(3) Certification required where no illustration is used. If no illustration is used by an insurance producer or other authorized representative of the insurer in the sale of a life insurance policy or if the policy is applied for other than as illustrated, the insurance producer, other authorized representative of the insurer, or insurer shall certify to that effect in writing on a form provided by the insurer. On the same form the applicant shall acknowledge that no illustration conforming to the policy applied for was provided and shall further acknowledge an understanding that an illustration conforming to the policy as issued will be provided no later than at the time of policy delivery. This form shall be submitted to the insurer at the time of policy application.(4) Illustration to be provided with policy. If the policy is issued under facts and circumstances described in paragraph (3) of this subsection, a basic illustration conforming to the policy as issued shall be sent with the policy. A copy shall be provided to the insurer and the policy owner.(5) Proof of illustration delivery by mail. If a basic illustration or revised illustration is sent to the applicant or policy owner by mail from an insurance producer, other authorized representative of an insurer, or the insurer itself, it shall include instructions for the applicant or policy owner to sign the duplicate copy of the numeric summary page of the illustration for the policy issued or applied for and return the signed copy to the insurer. The insurer's obligation under this subsection shall be satisfied if the insurer can demonstrate that the insurance producer, other authorized representative of the insurer, or the insurer itself has made a diligent effort to secure a signed copy of the numeric summary page. The requirement to make a diligent effort shall be deemed satisfied if the insurance producer, other authorized representative of the insurer, or insurer includes in the mailing a self-addressed postage prepaid envelope with instructions for the return of the signed numeric summary page.(b) Records retention. As applicable, a copy of the basic illustration, a revised basic illustration, and/or a signed numeric summary page, along with any certification that either no illustration was used or that the policy was applied for other than as illustrated, shall be retained by the insurer until three years after the policy is no longer in force. A copy of such records need not be retained if no policy is issued.28 Tex. Admin. Code § 21.2209
The provisions of this §21.2209 adopted to be effective September 29, 1998, 23 TexReg 9753; amended to be effective December 31, 2000, 25 TexReg 12986