State RegulationsTN specificDifficulty 1/5
Under the Tennessee rule on life insurance illustrations, Tenn. Comp. R. & Regs. 0780-1-40, what is an 'illustration'?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Tenn. Comp. R. & Regs. 0780-1-40, the Tennessee Department of Commerce & Insurance rule governing life insurance illustrations, defines an illustration as a personalized presentation or explanation of a policy's current and projected benefits, values, and costs. Because illustrations project future values, the rule regulates how they are prepared, signed, and delivered in connection with the sale of a life policy.
Why the other options are wrong
- B) The contractual policy pages are governed by the required-provision statutes such as T.C.A. § 56-7-2307, not by the illustration definition.
- C) A generic financial-strength brochure is advertising material, not a personalized illustration under Tenn. Comp. R. & Regs. 0780-1-40.
- D) The application and its attachments are underwriting documents; the illustration is a separate presentation of benefits and values.
Memory hook
Illustration = personalized projection — not the contract, not a brochure.