A basic illustration must include the following tabular detail for at least each policy year from one to ten and for every fifth policy year thereafter ending at age 100, policy maturity, or final expiration and, except for term insurance beyond the twentieth year, for any year in which the premium outlay and contract premium, if applicable, is to change:

1. (1) The premium outlay and mode the applicant plans to pay and the contract premium, as applicable;
2. (2) The corresponding guaranteed death benefit, as provided in the policy; and

3. (3) The corresponding guaranteed value available upon surrender, as provided in the policy.

   For a policy that provides for a contract premium, the guaranteed death benefit and value available upon surrender must correspond to the contract premium. Nonguaranteed elements may be shown if described in the contract. In the case of an illustration for a policy on which the insurer intends to credit terminal dividends, they may be shown if the insurer’s current practice is to pay terminal dividends. If any nonguaranteed elements are shown, they must be shown at the same durations as the corresponding guaranteed elements, if any. If no guaranteed benefit or value is available at any duration for which a nonguaranteed benefit or value is shown, a zero must be displayed in the guaranteed column.

Source: 23 SDR 228, effective July 1, 1997.

General Authority: SDCL 58-33-5.1.

Law Implemented: SDCL 58-33-5.1.