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 prior to the execution of the application, the following
information. The requirements of this section shall be deemed to have been
satisfied to the extent that a disclosure containing information required by
this section is delivered, either in the form of:
1) a prospectus included in the requirements
of the Securities Act of 1933 and which was declared effective by the
Securities and Exchange Commission; or
2) all information and reports required by
the Employee Retirement Income Security Act of 1974 if the policies are
exempted from the registration requirements of the Securities Act of 1933
pursuant to Section 3(a)(2) thereof.
A. A
summary explanation, in non-technical terms, or 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 must include notices of the
provisions required by 13 NMAC 9.8.18.1.5 and 13 NMAC 9.8.18.6 [now Paragraph
(5) of Subsection A of
13.9.8.18 NMAC and Subsection F of
13.9.8.18 NMAC];
B. A statement of the investment policy of
the separate account, including:
(1) a
description for the investment objectives 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 of such lesser period as the separate account has been in
existence.
D. A statement of the
charges 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
aspects of the policy applicable to the insured, the policyholder and the
beneficiary.
G. Illustrations of
benefits payable under the 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
if it is made clear that such assumed rates are hypothetical only.
