Iowa Administrative Code › Agency 191 - Insurance Division › Life and Health Insurance › Chapter 33 - Variable Life Insurance Model Regulation › Rule 191-33.9 - Reports to Policyholders

Current through Register Vol. 47, No. 3, July 24, 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 the policyholder's last known address the following
				  reports.
(1) Within 30 days after each
				anniversary of the policy, a statement or statements of the cash surrender
				value, death benefits, any partial withdrawal or policy loan, any interest
				charge, any optional payments allowed pursuant to subrule 33.4(4) under the
				policy computed as of the policy anniversary date. Provided, however, that such
				statement may be furnished within 30 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 60 days prior to the mailing of the notice. This statement shall
				state 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 rule. 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. For flexible premium policies,
				the report must contain a reconciliation of the change since the previous
				report in cash value and cash surrender value, if different, because of
				payments made (less deductions for expense charges), withdrawals, investment
				experience, insurance charges and any other charges made against the cash
				value. In addition, the report must show the projected cash value and cash
				surrender value, if different, as of one year from the end of the period
				covered by the report assuming that:
(1)
				Planned periodic premiums, if any, are paid as scheduled; (ii) guaranteed costs
				of insurance are deducted; and (iii) the net return is equal to the guaranteed
				rate or, in the absence of a guaranteed rate, is not greater than zero. If the
				projected value is less than zero, a warning message must be included that
				states that the policy may be in danger of terminating without value in the
				next 12 months unless additional premium is paid.
(2) Annually, a statement or statements
				including:
a. A summary of the financial
				statement of the separate account based on the annual statement last filed with
				the commissioner;
b. 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 not less than five years when available;
c. 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;
d. Any charges levied against the separate
				account during the previous year;
e. 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.
(3) For flexible premium policies, a report
				must be sent to the policyholder if the amounts available under the policy on
				any policy processing day to pay the charges authorized by the policy are less
				than the amount necessary to keep the policy in force imtil the next following
				policy processing day. The report must indicate the minimum payment required
				under the terms of the policy to keep it in force and the length of the grace
				period for payment of such amount.