Alaska Administrative Code › Title 3 - Commerce, Community, and Economic Development › Part 2 - Division of Insurance › Chapter 28 - Life, Health, Variable, and Related Insurance › Article 1 - Variable Contracts › 3 AAC 28.140 - Contracts providing for variable benefits

Current through May 31, 2024
(a) Any variable
				  contract providing benefits payable in variable amounts delivered or issued for
				  delivery in this state shall contain a statement of the essential features of
				  the procedures to be followed by the insurance company in determining the
				  dollar amount of such variable benefits. Any such contract, including a group
				  contract and any certificate of variable benefits issued thereunder, shall
				  state that such dollar amount will vary to reflect investment experience and
				  shall contain on its first page a clear statement to the effect that the
				  benefits thereunder are on a variable basis.
(b) Illustrations of benefits payable under
				  any variable contract shall not include projections of past investment
				  experience into the future or attempted predictions of future investment
				  experience; provided that nothing contained herein is intended to prohibit use
				  of hypothetical assumed rates of return to illustrate possible levels of
				  benefits.
(c) No individual
				  variable annuity contract calling for the payment of periodic stipulated
				  payments shall be delivered or issued for delivery in this state unless it
				  contains in substance the following provisions or provisions which in the
				  opinion of the director are more favorable to the holders of such contracts:
(1) a provision that there shall be a period
				  of grace of 30 days or of one month, within which any stipulated payment to the
				  insurer falling due after the first may be made, during which period of grace
				  the contract shall continue in force. The contract may include a statement of
				  the basis for determining the date as of which any such payment received during
				  the period of grace shall be applied to produce the values under the contract
				  arising therefrom;
(2) a provision
				  that, at any time within one year from the date of default, in making periodic
				  stipulated payments to the insurer during the life of the annuitant and unless
				  the cash surrender value has been paid, the contract may be reinstated upon
				  payment to the insurer of such overdue payments as required by the contract,
				  and of all indebtedness to the insurer on the contract, including interest. The
				  contract may include a statement of the basis for determining the date as of
				  which the amount to cover such overdue payments and indebtedness shall be
				  applied to produce the values under the contract arising therefrom;
(3) a provision specifying the options
				  available in the event of default in a periodic stipulated payment. Such
				  options may include an option to surrender the contract for a cash value as
				  determined by the contract, and shall include an option to receive a paid-up
				  annuity if the contract is not surrendered for cash, the amount of such paid-up
				  annuity being determined by applying the value of the contract at the annuity
				  commencement date in accordance with the terms of the contract.