North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-04 - Variable Life Insurance › Section 45-04-04-08 - Reports to policyholders

Current through Supplement No. 393, July, 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 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 subsection 4 of section
				45-04-04-03 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 sixty days prior to the mailing of the notice. This
				statement must 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 must 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 must 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: (a) planned periodic premiums, if any, are
				paid as scheduled; (b) guaranteed costs of insurance are deducted; and (c) the
				net investment 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 twelve 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 adviser of
				the separate account.