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:
a. The beginning
and end date of the current report period;
b. The policy value at the end of the
previous report period and at the end of the current report period;
c. 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);
d. The current death benefit at the end of
the current report period on each life covered by the policy;
e. The net cash surrender value of the policy
as of the end of the current report period;
f. The amount of outstanding loans, if any,
as of the end of the current report period; and
g. 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
h. For flexible premium
polices:
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 polices, where applicable:
a.
Current death benefit;
b. Annual
contract premium;
c. Current cash
surrender value;
d. Current
dividend;
e. Application of current
dividend; and
f. Amount of
outstanding loan.
3.
Insurers writing life insurance policies that do not build non-forfeiture
values shall only be required to provide anannual report with respect to these
policies for those years when a change has been made to non-guaranteed
policyelements 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, such an 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 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 forceillustration
of current and future benefits and values based on the insurer'spresent
illustration scale. This illustration shall comply with the requirements of
Section 6A, 6B, 7A and 7E. No signature or other acknowledgement 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.
