A producer alters an approved life insurance illustration to show higher projected cash values than the insurer's approved values, hoping to close the sale. Under 40 P.S. § 625.8, the producer has:

Why C is correct

40 P.S. § 625.8 requires that illustrations used in the sale of a life policy be accurate and not misleading; an illustration altered to inflate projected values fails that standard on its face. The producer has made a misleading presentation of policy values, and the Pennsylvania Insurance Department can discipline the producer's license and hold the insurer accountable for the representations made on its behalf. The later delivery of a correct policy does not undo the deception used to obtain the sale.

Why the other options are wrong

• A) Illustrations are regulated sales materials under the illustrations provisions; altering them is not a free-form activity.
• B) The deception occurs when the inflated illustration is used to sell; later accuracy in the policy does not legalize the earlier misrepresentation.
• D) The illustrations rules expressly govern life insurance illustrations, not only annuity illustrations.

Memory hook

Pad the projection, lose the license — illustrations must match the approved numbers.