Which statement is NOT a standard or requirement for an illustration?

Which statement is NOT a standard or requirement for an illustration?

• A. Guaranteed elements must be labeled as such
• B. Non-guaranteed elements must be labeled as such
• C. All elements must clearly indicate guaranteed vs non-guaranteed
• D. Guaranteed elements must be labeled as such, but non-guaranteed elements need not be labeled

Answer: (D)

Illustrations must clearly separate guaranteed elements from non-guaranteed elements and label each accordingly. Guaranteed portions, such as the minimum death benefit and any guaranteed cash value or premium, must be labeled as guaranteed. Non-guaranteed elements, like assumed interest credited or projected cash values based on future performance, must be labeled as non-guaranteed as well. All elements in the illustration should make this distinction obvious to avoid confusion about what is actually guaranteed versus what depends on future events. The statement claiming that guaranteed elements must be labeled but non-guaranteed elements need not be labeled is not a valid standard because it could mislead consumers by hiding the contingent nature of important values.

Illustrations must clearly separate guaranteed elements from non-guaranteed elements and label each accordingly. Guaranteed portions, such as the minimum death benefit and any guaranteed cash value or premium, must be labeled as guaranteed. Non-guaranteed elements, like assumed interest credited or projected cash values based on future performance, must be labeled as non-guaranteed as well. All elements in the illustration should make this distinction obvious to avoid confusion about what is actually guaranteed versus what depends on future events. The statement claiming that guaranteed elements must be labeled but non-guaranteed elements need not be labeled is not a valid standard because it could mislead consumers by hiding the contingent nature of important values.