Misleading Policy Terms Prohibited

Misleading Policy Terms Prohibited 1.02.1Section 1 A life insurance policy or annuity contract issued or delivered in this State shall not contain language or words in the context or description that have the tendency to mislead a purchaser or prospective purchaser to believe he will receive a benefit not in the policy or some benefit not available to other persons of the same class and equalexpectation of life. 1.02.2Section 2 No company or person shall deliver within this State, or issue for deliverywithin this State, any life insurance policy or contract of annuity or other printed material describing premium payments in language which states the payment is a “Deposit”, unless: A. The payment establishes a debtor-creditor relationship between the insurancecompany and the policyholder; or B. The term is used in conjunction with the word “Premium” in such a manner as to clearly indicate the true character of the payment. 1.02.3Section 3 Any policies of life insurance or contracts of annuity which have heretofore been approved by the Insurance Department but which do not conform to anyrequirement or requirements of Chapters 1 and 2 hereof shall be discontinued on or before July 1, 1968, or the same shall then become violations of these rules.