An insurer delivering or issuing for delivery in this state
any variable life insurance contracts shall deliver to the applicant for such
contract, 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 a prospectus included in the
requirements of
15
United States Code §77a, et seq., which was
declared effective by the Securities and Exchange Commission; or all
information and reports required by
29 United States
Code §1001 et seq., if the policies are
exempted from the registration requirements of
15
United States Code §77a, et seq.:
(1) a summary explanation in nontechnical
terms, of the principal features of the contract, 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 provision required by §
3.804(3)(A)(v) and (3)(F)
of this title (relating to Insurance
Contract and Filing Requirements);
(2) a statement of the investment policy of
the separate account, including:
(A) a
description of the investment objectives intended for the separate account and
the principal types of investments intended to be made; and
(B) any restrictions or limitations on the
manner in which the operations of the separate account are intended to be
conducted;
(3) a
statement of the net investment return of the separate account for each of the
last 10 years or such lesser period as the separate account has been in
existence;
(4) a statement of the
charges levied against the separate account during the previous year;
(5) a summary of the method to be used in
valuing assets held by the separate account;
(6) a summary of the federal income tax
aspects of the contract applicable to the insured, the contractholder, and the
beneficiary;
(7) 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
investments 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.
