An insurer that delivers or issues for delivery in this state a variable life insurance policy shall send the following reports to each variable life insurance policyholder:
1.Within thirty days after each anniversary of the policy, a statement or statements of the cash surrender value, the death benefit, any partial withdrawal or policy loan, any interest charge and any optional payments that are allowed under the policy and that are computed as of the policy anniversary date. The statement may be furnished within thirty days after a specified date in each policy year if the information contained in the statement is computed not more than sixty days before the notice is sent. This statement shall state that the cash values and the variable death benefit may increase or decrease accordin
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An insurer that delivers or issues for delivery in this state a variable life insurance policy shall send the following reports to each variable life insurance policyholder:
1. Within thirty days after each anniversary of the policy, a statement or statements of the cash surrender value, the death benefit, any partial withdrawal or policy loan, any interest charge and any optional payments that are allowed under the policy and that are computed as of the policy anniversary date. The statement may be furnished within thirty days after a specified date in each policy year if the information contained in the statement is computed not more than sixty days before the notice is sent. This statement shall state that the cash values and the variable death benefit may increase or decrease according to the investment experience of the separate account and shall prominently identify any value that the statement describes and that may be recomputed before the next statement required by this section. If the policy guarantees that the variable death benefit on the next policy anniversary date will not be less than the variable death benefit specified in the statement, the statement shall be modified to indicate this policy guarantee. In addition, the report must show the projected cash value and cash surrender value, if different, as of one year from the end of the period covered by the report. In determining the projected value, the insurer shall assume that the planned periodic premiums, if any, are paid as scheduled, that the guaranteed costs of insurance are deducted and that the net return is equal to the guaranteed rate, or if there is no guaranteed rate, is not greater than zero. If the projected value is less than zero, the statement shall include a warning message that the policy may be in danger of terminating without value in the next twelve months unless additional premium is paid. For flexible premium policies, the report shall contain a reconciliation of the change since the previous report in cash value and cash surrender value, if different, because of payments made, less deductions for expense charges, withdrawals, investment experience, insurance charges and any other charges made against the cash value.
2. An annual statement or statements, including:
(a) A summary of the financial statement of the separate account that is based on the annual statement last filed with the director.
(b) The net investment return of the separate account for the last year and, for each year after the first, a comparison of the investment rate of the separate account during the last year with the investment rate during prior years, up to a total of not less than five years if available.
(c) A list of investments that are held by the separate account as of a date not earlier than the end of the last year for which an annual statement was filed with the director.
(d) Any charges that were levied against the separate account during the previous year.
(e) A statement of any change in the investment objective and orientation of the separate account, in any investment restriction or material quantitative or qualitative investment requirement that applies to the separate account or in the investment advisor of the separate account.
3. For flexible premium policies, if the amounts that are available under the policy on any policy processing day to pay the charges that are authorized by the policy are less than the amount necessary to keep the policy in force until the next following policy processing day, a report that indicates the minimum payment that is required under the terms of the policy to keep the policy in force and the length of the grace period for the payment of that amount.