California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 11.1 - Separate Account or Accounts-Variable Life Insurance Contracts › Section 2534.8 - Reports to Policyholders

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Any insurer delivering or issuing for delivery in this
					 State any variable life insurance policies shall mail to each variable life
					 insurance policyholder at his or her last known address the following
					 reports:
(a) Within thirty days after
				  each anniversary of the policy, a statement or statements of the cash surrender
				  value, death benefit, any partial withdrawal or policy loan, any interest
				  charge, and any optional payments allowed pursuant to Section
				  2534.3(d) under
				  the policy computed as of the policy anniversary date. Provided however that
				  such statement may be furnished within thirty days after a specified date in
				  each policy year so long as the information contained therein is computed as of
				  a date not more than forty-five days prior to the mailing of such notice. This
				  statement shall state in contrasting color or distinctive type that, in
				  accordance with the investment experience of the separate account, the cash
				  values and the variable death benefit may increase or decrease, and shall
				  prominently identify any value described therein which may be recomputed prior
				  to the next statement required by this Section. If the policy guarantees that
				  the variable death benefit on the next policy anniversary date will not be less
				  than the variable death benefit specified in such statement, the statement
				  shall be modified to so indicate.
(b) Annually, a statement or statements
				  including:
(1) A summary of the financial
				  statement of the separate account based on the Annual Statement last filed with
				  the Commissioner;
(2) The net
				  investment return of the separate account for the last year and, for each year
				  after the first, a comparison of the investment rate of the separate account
				  during the last year with the investment rate during prior years, up to a total
				  of five years when available;
(3) A
				  list of investments held by the separate account as of a date not earlier than
				  the end of the last year for which an Annual Statement was filed with the
				  Commissioner;
(4) Any charges,
				  taxes, and brokerage fees determined on an accrual basis payable by the
				  separate account during the previous year, each expressed as a dollar amount
				  and a percentage, and the total expressed as a dollar amount and as a
				  percentage of the assets of the separate account;
(5) A statement of the portfolio turnover
				  rate as defined herein during the preceding fiscal year of investments
				  allocated to the separate account:
(A) The
				  rate shall be calculated by dividing (A) the lesser of purchases or sales of
				  portfolio securities for the particular fiscal year by (B) the monthly average
				  of the value of the portfolio securities owned by the separate account during
				  the particular fiscal year. Such monthly average shall be calculated by
				  totaling the values of the portfolio securities as of the beginning and end of
				  the first month of the particular fiscal year and as of the end of each of the
				  succeeding eleven months, and dividing the sum by 13, except that the average
				  value of securities for which market quotations are not available may be based
				  upon the value of such securities as of the end of the preceding fiscal
				  quarters.
(B) For the purposes of
				  this item, there shall be excluded from both the numerator and the denominator
				  all U. S. Government securities (short-term and long-term) and all other
				  securities whose maturities at the time of acquisition were one year or less.
				  Purchases shall include any cash paid upon the conversion of one portfolio
				  security into another. Purchases shall also include the cost of rights or
				  warrants purchased. Sales shall include the net proceeds of the sale of rights
				  or warrants. Sales shall also include the net proceeds of redemptions of
				  portfolio securities by call or maturity.
(C) The insurer shall show, in addition to
				  the calculated portfolio turnover rate, both the amount of the purchases and
				  the amount of the sales (calculated as prescribed in (B) above) and the monthly
				  average (but not the individual monthly figures) of the value of the portfolio
				  securities owned by the separate account during the fiscal year.
(D) The insurer may if it wishes make any
				  statement or explanation with respect to any significant variations in the
				  portfolio turnover rate during the three fiscal years next
				  preceding;
(6) A
				  statement of any change, since the last report, in the investment objective and
				  orientation of the separate account, in any investment restriction or material
				  quantitative or qualitative investment requirement applicable to the separate
				  account, or in the investment advisor of the separate account;
(7) The name of each broker or dealer
				  handling portfolio transactions on behalf of the separate account in which the
				  insurer or an affiliate has any material, direct or indirect, interest and the
				  nature of such transactions and the amount of compensation received by each
				  such broker or dealer from business originating with the separate account
				  during the preceding fiscal year;
(8) The names and principal occupations of
				  each principal executive officer and each director of the insurer,
				  and
(9) The names of all parents of
				  the insurer and the basis of control of the insurer, and the name of any person
				  who is known to own, of record or beneficially, 10% or more of the outstanding
				  voting securities of the company.