Rule 23. The requirements of this rule 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, 15 U.S.C. S77A et seq., and which was declared effective by the
securities and exchange commission to the extent that the prospectus contains
the information required by this rule. 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 acknowledgment of receipt
from such applicant coincident with, or before, the execution of the
application, the following information:
(a) A summary explanation, in nontechnical
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. Such
explanation shall include notices of the provisions required by
R 500.850(a)(iv) and
(f).
(b) A statement of the investment policy of
the separate account, including both of the following:
(i) A description of the investment objective
and orientation intended for the separate account and the principal types of
investments intended to be made as required by
R
500.843(c)(iii).
(ii) 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 10 years for which the separate account was in existence.
(d) A statement of the annual taxes,
brokerage fees, and all other costs, including all allowable charges whether
expressed as an annual percentage or otherwise, levied against the separate
account during the previous year.
(e) A summary of the method to be used in
valuing assets held by the separate account.
(f) A summary of the federal income tax
liabilities of the policy applicable to the insured, the policy owner, and the
beneficiary.
(g) Illustrations of
benefits payable under any variable life insurance contract 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;
however, nothing contained in this subdivision shall be construed to prohibit
the use of hypothetical assumed rates of return to illustrate possible levels
of benefits if it is made clear that such assumed rates are hypothetical
only.
