An insurer delivering or issuing for delivery in this State
any variable life insurance policies shall deliver to the applicant for the
policy, and obtain a written acknowledgement of receipt from such applicant
coincident with or prior to the execution of the application, the following
information. The requirements of this Section shall be deemed to have been
satisfied by the delivery to the applicant of a prospectus included in a
registration statement which satisfies the requirements of the Securities Act
of 1933 and which was declared effective by the Securities and Exchange
Commission to the extent that the prospectus contains the information required
by this Section.
(a) A summary
explanation, in non-technical terms, of the principal features of the policy,
including a description of the manner in which the variable benefits will
reflect the investment experience of the separate account and the factors which
affect such variation;
(b) A
statement of the investment policy of the separate account, including:
(1) A description of the investment objective
and orientation intended for the separate account and the principal types of
investments intended to be made, and
(2) Any restriction or limitations on the
manner in which the operations of the separate account are intended to be
conducted;
(c) A
statement of the net investment return of the separate account for each of the
last ten years for which the separate account was in existence;
(d) A statement describing, as an approximate
percentage of an annual gross premium for each year and for the life of the
policy, all commission or equivalent payments to be paid to all agents or other
persons as a result of the proposed sale for each year of the policy for which
such payments are to be made. As used in this subsection, "commissions" mean
all monies and other valuable consideration, including but not limited to
prizes, bonuses paid directly or indirectly to, for, or on behalf of the
selling agent as compensation for services in the sale of variable life
insurance;
(e) A statement of the
annual taxes, brokerage fees, and similar costs, and the charges expressed as
an annual percentage, levied against the separate account during the previous
year;
(f) A summary of the method
to be used in valuing assets held by the separate account;
(g) A summary of the federal income tax
liabilities of the policy applicable to the insured, the policy owner, and the
beneficiary;
(h) If the applicant
is furnished illustrations of benefits payable under any variable life
insurance contract, such illustrations shall be prepared by the insurer and
shall not include projections of past investment experience into the future or
attempted predictions of future investment experience; provided that nothing
contained herein prohibits use of hypothetical assumed rates of return to
illustrate possible levels of benefits, and that it is made clear that such
assumed rates are hypothetical only;
(i) A prominent statement either in
contrasting color or in boldface type at least four points larger than the type
size of the largest type used in the text of any provision on the page
providing in substance the following information:
The purpose of this variable life insurance policy is
to provide insurance protection for the beneficiary named
therein.
No claim is made that this variable life insurance
policy is in any way similar or comparable to a systematic investment plan of a
mutual fund.
