§ 27-38-2 — Variable Contracts - Statement of Procedures for Determining Benefits; Death Benefit Provision

Alabama § 27-38-2

• Jurisdiction: Alabama
• Title 27: Insurance
• Ch. 38: Separate Accounts and Variable Annuities

Text

(a) Any variable contract providing benefits payable in variable amounts delivered, or issued for delivery, in this state shall contain a statement of the essential features of the procedures to be followed by the insurer in determining the dollar amount of such variable benefits. Any such contract, including a group contract, and any certificate in evidence of variable benefits issued thereunder shall state that such dollar amount will vary to reflect investment experience and shall contain on its first page a statement to the effect that the benefits thereunder are on a variable basis.
(b) Variable annuity contracts delivered, or issued for delivery, in this state may include as an incidental benefit provision for payment on death during the deferred period of an amount not in excess of the greater of the sum of the premiums or stipulated payments paid under the contract or the value of the contract at time of death. Any such provision shall not be deemed to be life insurance and therefore shall not be subject to the provisions of this title governing life insurance contracts. A provision for any other benefit on death during the deferred period shall be subject to this title.

Legislative History

(Acts 1969, No. 565, p. 1045, §1; Acts 1971, No. 407, p. 707, §755.)