31 Pa. Code § 87.28. Reference to payment as deposit.''

31 Pa. Code § 87.28. Reference to payment as ‘‘deposit.’’

§ 87.28. Reference to payment as ‘‘deposit.’’

A life insurance company, broker, agent, solicitor or representative may not describe or refer to premium payments in language which states that the payment is a ‘‘deposit,’’ unless either of the following apply:
   (1)  The payment establishes a debtor-creditor relationship between the life insurance company and the policyholder and a showing is made as to when and how the deposit may be withdrawn.
   (2)  The term is used in conjunction with the word ‘‘premium’’ in such a manner as to indicate clearly the true character of the payment.

Cross References

   This section cited in 31 Pa. Code §  87.21 (relating to scope); 31 Pa. Code §  90c.8 (relating to prohibited terminology); 31 Pa. Code §  90d.6 (relating to prohibited terminology); 31 Pa. Code §  90e.8 (relating to prohibited terminology); 31 Pa. Code §  90f.9 (relating to prohibited terminology); 31 Pa. Code §  90g.9 (relating to prohibited terminology); and 31 Pa. Code §  90h.7 (relating to prohibited terminology).

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