Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 95.00 - Variable Life Insurance › Section 95.04 - Investment Policy

Current through Register 1525, July 5, 2024
(1) With respect to
			 each separate account maintained by an insurer for any variable life insurance
			 policy, the insurer shall have filed with the Commissioner a statement of the
			 investment policy the insurer intends to follow for the investment of the
			 assets held in such separate account and a statement of the procedures for
			 changing such investment policy. The statement of investment policy shall
			 include a description of the investment objectives intended for the separate
			 account.
(2) No material change in
			 the investment policy of a separate account established pursuant to M.G.L. c.
			 175, §§ 132F or 132G shall be made unless the insurer has notified
			 the Commissioner in writing of its intention to make such change at least 60
			 days prior to instituting such change or such shorter period as the
			 Commissioner may permit, and he or she has not disapproved it within such
			 period. At any time, the Commissioner may, after notice and hearing, disapprove
			 any change that has become effective pursuant to 211 CMR 95.04.
(3) Such material change in the investment
			 policy of the separate account shall be disapproved by the Commissioner if such
			 material change is deemed to render the insurer's operations hazardous to the
			 public or the insurer's policyholders in the Commonwealth.
(4) If the variable life insurance policy
			 does not provide for a fixed investment option, any policyholder objecting to a
			 proposed material change in the investment policy of a separate account, which
			 change subsequently becomes effective, shall be given the option to convert
			 within 60 days after the effective date of such change, or the receipt of a
			 notice of the options available, whichever is later, without evidence of
			 insurability, under one of the following options, to a general account life
			 insurance policy issued by the insurer, a subsidiary of the insurer, its
			 parent, or an affiliate licensed to transact life insurance business in the
			 Commonwealth:
(a) if the policy is a
			 scheduled premium policy, and in force on a premium paying basis, at least one
			 of the following options;
1. conversion as of
			 the original issue age to a substantially comparable permanent form of fixed
			 benefit general account life insurance, based on the insurer's premium rate for
			 fixed benefit general account life insurance at the original issue age for an
			 amount of insurance not exceeding the death benefit of the variable life
			 insurance policy on the date of conversion;
2. conversion as of the attained age to a
			 substantially comparable permanent form of fixed benefit general account life
			 insurance for an amount of insurance not exceeding the excess of the death
			 benefit of the variable life insurance policy on the date of conversion over
			 its cash value on the date of conversion if the policyholder elects to
			 surrender the variable life policy for its net cash surrender value, or over
			 the death benefit payable under any paid-up insurance option if the
			 policyholder elects such nonforfeiture option under the variable life
			 policy.