SECTION 4.1003. Solicitation and Advertising

(a) The initial premium charge and its period of guarantee, the maximum premium charge, the fact that the maximum premium charge might be charged, and the frequency of premium redetermination dates must be set forth prominently in:

(1) any advertising containing an application or any advertisement used with a solicitation; and

(2) any oral or written solicitation. In any such solicitation or advertisement the insurer or insurance agent must also furnish the prospective insured with a written statement containing language substantially as follows: The company reserves the right to charge the maximum premium beginning with any premium redetermination date. The premium at redetermination date, if less than the maximum premium stated in the policy, is not guaranteed beyond the current redetermination period. Also, the premium at redetermination date is subject to the company's expectations as to one or more future cost factors including persistency, expenses, mortality, and interest. Any increase in premium will not result in an increase in your benefits or cash values, if any, or other nonforfeiture values.

(b) No insurer or agent may, in marketing an indeterminate premium reduction policy, mention, illustrate, or refer in any fashion to any possible or likely specific future charge for the coverage unless the illustration, mentioning, or reference is made on the basis of current, stated and official company projections such as interest, persistency, mortality, or expense factors. Upon request of a prospective applicant, the insurer or agent must provide an explanation of the basis of any illustration.

(c) If nonguaranteed premium rates are displayed in advertising and disclosure material, the maximum premium rate(s) must be displayed with equal prominence.

Source Note: The provisions of this §4.1003 adopted to be effective May 8, 1980, 5 TexReg 1579; amended to be effective October 23, 1980, 5 TexReg 4091; amended to be effective January 27, 1983, 8 TexReg 185; transferred effective September 1, 2023, as published in the July 28, 2023, issue of the Texas Register, 48 TexReg 4127