An insurer delivering or issuing for delivery in this state a
variable life insurance policy shall deliver the following to the applicant for
the policy, and obtain a written acknowledgment of receipt from the applicant
coincident with or prior to the execution of the application. 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 the Securities Act
of 1933 and which was declared effective by the Securities and Exchange
Commission; or 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, of 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 that affect the
variation. The explanation shall include notices of the provision required by
Sections 4(c)(i)(E) and 4(c)(v);
(b) A statement of the investment policy of
the separate account, including:
(i) A
description of the investment objectives intended for the separate account and
the principal types of investments intended to be made; and
(ii) Any restrictions 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 (10) years or 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; and
(g) Illustrations
of benefits payable under the variable life insurance contract. The
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 the assumed rates are
hypothetical only.
