A licensed New York agent preparing a sales presentation wants to raise the illustrated nonguaranteed crediting rate so the policy compares favorably with a competitor's illustration. Under Reg 74, the agent may do which of the following?

Why A is correct

Under Reg 74 (11 NYCRR Part 53), the illustration used in the sale must be one supported and furnished by the insurer; the agent may not alter it or create a new one to make the policy look more attractive. Changing nonguaranteed figures would produce a misleading illustration, exposing both the agent and the insurer to New York Department of Financial Services sanctions.

Why the other options are wrong

• B) Written disclosure of the change does not cure the problem; an altered illustration violates Reg 74 regardless of what the applicant is shown.
• C) The applicant's consent cannot authorize the use of an illustration the agent is not permitted to present under Reg 74.
• D) Even actual insurer approval requires the insurer to issue the revised illustration itself; informal telephone approval does not permit the agent to modify figures.

Memory hook

Agents present, insurers create — Reg 74 keeps pens out of agents' hands.