State RegulationsNY specificDifficulty 2/5
A New York agent wants to build a custom spreadsheet showing more favorable projected values than the insurer's approved illustration software produces. Under Reg 74, which statement is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under Reg 74 (11 NYCRR Part 53-3.1 to .6), life insurance illustrations used in New York sales must be generated under the insurer's control; the insurer whose policy is illustrated is responsible for the illustration forms and their accuracy. A licensee cannot devise personal sales projections outside the insurer's approved illustration system, because doing so defeats the consumer protections the regulation creates.
Why the other options are wrong
- A) A label does not transform a self-made projection into a compliant illustration.
- B) The applicant's initials cannot cure the use of a noncompliant, unauthorized projection.
- C) Using homemade projections to induce a purchase is the core abuse the rule prevents; issuance does not legitimize them.
Memory hook
Only the insurer's pen draws illustrations — agents cannot freelance.