(a) Requirements applicable generally.

1. (1)

   1. (A) The insurer shall provide a buyer’s guide to all prospective purchasers prior to accepting the applicant's initial premium or premium deposit.
   2. (B) However, if the policy for which application is made contains an unconditional refund provision of at least ten (10) days, the buyer’s guide may be delivered with the policy or prior to delivery of the policy.

2. (2)

   1. (A) The insurer shall provide a separate policy summary to prospective purchasers that shall be set out in a manner that does not minimize or render any portion of the summary obscure.
   2. (B) The policy summary shall set forth information as follows:

(i) Any amounts that remain level for two (2) or more years of the policy may be represented by a single number if it is clearly indicated what amounts are applicable for each policy year;

1. (ii) Amounts in 23 CAR § 85-103(6)(E) shall be listed in total, not on a per thousand or per unit basis;

   1. (iii) If more than one (1) insured is covered under one (1) policy or rider, death benefits shall be displayed separately for each insured or for each class of insureds if death benefits do not differ within the class;

      1. (iv) Zero (0) amounts shall be displayed as a blank space; and
      2. (v) Delivery of the policy summary shall be consistent with the time for delivery of the buyer’s guide as specified in subdivision (a)(1) of this section.

2. (3)

   1. (A) When the sale involves a product in addition to life insurance, the life insurance solicitation must be:

      1. (i) Separately disclosed; and
      2. (ii) Independently available without the purchase of another product, unless such sale has been found unobjectionable by the Insurance Commissioner.
   2. (B) All information applicable to the life insurance sale must be separately disclosed as required by this section.
3. (4) In the event a computer or financial advisory service produces or furnishes individualized promotional material used in connection with the sale or solicitation of insurance, a complete disclosure shall be made identifying any financial, proprietary, or contractual arrangement or interest between the service and the insurer or insurance producer.

(b) Requirements applicable to existing policies.

1. (1)

   1. (A) If a life insurance company changes its method of determining scales of nonguaranteed elements on existing policies, it shall, no later than when the first payment is made on the new basis, advise each affected policy owner residing in this state of this change and of its implication on affected policies.
   2. (B) This requirement shall not apply to policies for which the amount payable upon death under the basic policy as of the date when advice would otherwise be required does not exceed five thousand dollars ($5,000).

2. (2) If the insurer makes a material revision in the terms and conditions under which it will limit its right to change any nonguaranteed factor, it shall, no later than the first policy anniversary following the revision, advise each affected policy owner residing in this state.

   1. (c) Recordkeeping.

3. (1)

   1. (A) Insurers, general agents, independent agencies, and insurance producers shall maintain or be able to make available to the commissioner records of the information collected from the consumer and other information required by this part for five (5) years after the insurance transaction is completed by the insurer.
   2. (B) An insurer is permitted, but shall not be required, to maintain documentation on behalf of an insurance producer.

4. (2) Records required to be maintained by this part may be maintained:

   1. (A) In paper, photographic, microprocess, magnetic, mechanical, or electronic media; or
   2. (B) By any process that accurately reproduces the actual document.