An insurer delivering or issuing for delivery in this state
any variable life insurance contracts must deliver to the applicant for such
contract and obtain a written acknowledgment of receipt from such applicant
coincident with or before the execution of the application, the following
information. The requirements of this section will 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., that 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
how the variable benefits will reflect the investment experience of the
separate account and the factors that affect such variation. Such explanation
must include notices of the provision required by §
4.1504(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 how
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 contract holder, and the
beneficiary;
(7) illustrations of
benefits payable under the variable life insurance contract. Such illustrations
must be prepared by the insurer and may 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.
