§ 27-62-9. Annual report — Notice to policy owners.
(a) In the case of a policy designated as one for which illustrations will be used, the
insurer shall provide each policy owner with an annual report on the status of the
policy that shall contain at least the following information:
(1) For universal life policies, the report shall include the following:
(i) The beginning and end date of the current report period;
(ii) The policy value at the end of the previous report period and at the end of the current
report period;
(iii) The total amounts that have been credited or debited to the policy value during the
current report period, identifying each by type (e.g., interest, mortality, expense
and riders);
(iv) The current death benefit at the end of the current report period on each life covered
by the policy;
(v) The net cash surrender value of the policy as of the end of the current report period;
(vi) The amount of outstanding loans, if any, as of the end of the current report period;
and
(vii) For fixed premium policies: if, assuming guaranteed interest, mortality and expense
loads and continued scheduled premium payments, the policy's net cash surrender value
is such that it would not maintain insurance in force until the end of the next reporting
period, a notice to this effect shall be included in the report; or
(viii) For flexible premium policies: if, assuming guaranteed interest, mortality and expense
loads, the policy's net cash surrender value will not maintain insurance in force
until the end of the next reporting period unless further premium payments are made,
a notice to this effect shall be included in the report.
(2) For all other policies, where applicable:
(i) Current death benefit;
(ii) Annual contract premium;
(iii) Current cash surrender value;
(iv) Current dividend;
(v) Application of current dividend; and
(vi) Amount of outstanding loan.
(3) Insurers writing life insurance policies that do not build nonforfeiture values shall
only be required to provide an annual report with respect to these policies for those
years when a change has been made to non-guaranteed policy elements by the insurer.
(b) If the annual report does not include an in force illustration, it shall contain the
following notice displayed prominently: "IMPORTANT POLICY OWNER NOTICE: You should
consider requesting more detailed information about your policy to understand how
it may perform in the future. You should not consider replacement of your policy or
make changes in your coverage without requesting a current illustration. You may annually
request, without charge, a current illustration by calling [insurer's phone number],
writing to [insurer's name] at [insurer's address] or contacting your agent. If you
do not receive a current illustration of your policy within thirty (30) days from
your request, you should contact your state insurance department.� The insurer may
vary the sequential order of the methods for obtaining an in force illustration.
(c) Upon the request of the policy owner, the insurer shall furnish an in force illustration
of current and future benefits and values based on the insurer's present illustrated
scale. This illustration shall comply with the requirements of §§ 27-62-5 and 27-62-6. No signature or other acknowledgment of receipt of this illustration shall be required.
(d) If an adverse change in non-guaranteed elements that could affect the policy has been
made by the insurer since the last annual report, the annual report shall contain
a notice of that fact and the nature of the change prominently displayed.