(1) If a policy is designated as one for
which an illustration will be used, the insurer shall provide each policy owner
with an annual report on the status of the policy that shall contain the
information in Subsection (1)(a) or (1)(b).
(a) For a universal life insurance policy,
the report shall include the following:
(i)
the beginning and end date of the current report period;
(ii) the policy value at the end of the
previous report period and at the end of the current report period;
(iii) the total amounts that have been
credited or debited to the policy value during the current report period,
identifying each by type, such as interest, mortality, expense, and
riders;
(iv) the current death
benefit at the end of the current report period on each life covered by the
policy;
(v) the net cash surrender
value of the policy as of the end of the current report period;
(vi) the amount of any outstanding loans as
of the end of the current report period; and
(vii) if, assuming guaranteed interest,
mortality and expense loads, and any required 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 shall be included in the
report.
(b) For any
other policy, where applicable:
(i) the
current death benefit;
(ii) the
annual contract premium;
(iii) the
current cash surrender value;
(iv)
the current dividend;
(v) the
application of current dividend; and
(vi) the amount of any outstanding
loan.
(c) An insurer
writing a life insurance policy that does not develop nonforfeiture values is
only required to provide an annual report for those years when a change has
been made to non-guaranteed policy elements by the insurer.
(2)
(a) If
the annual report does not include an in force illustration, it shall
prominently display the following notice:
"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 producer. If you do not receive a current illustration of your
policy within 30 days from your request, you should contact your state
insurance department."
(b)
The insurer may vary the sequential order of the methods for obtaining an in
force illustration.
(3)
Upon the request of a policy owner, an insurer shall furnish an in force
illustration of current and future benefits and values based on the insurer's
present illustrated scale.
(b) No signature or acknowledgment of receipt
of this illustration is required.
(4) If, since the last annual report, an
insurer has made an adverse change in a non-guaranteed element that could
affect the policy, the annual report shall prominently display a notice
describing the nature of the change.
Notes
Utah Admin. Code
R590-177-9
Amended by
Utah
State Bulletin Number 2023-03, effective
1/24/2023
