New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter III - Policy and Certificate Provisions › Subchapter A - Life, Accident and Health Insurance › Part 54 - Variable Life Insurance › Section 54.11 - Reports to policyholders

Current through Register Vol. 46, No. 28, July 10, 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 60 days after each
				  anniversary of the policy, a statement or statements of the cash surrender
				  value, policy value, death benefit, any partial withdrawal or policy loan, any
				  interest charge, and any optional payments allowed pursuant to section
				  54.6(b)(10) 
				  of this Part 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 such
				  notice. This statement shall state that, in accordance with the investment
				  experience of the separate account, the policy 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 subdivision. 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 policy 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 policy value. If, based upon the billed or other
				  appropriate identified premium, an assumed net investment return of not greater
				  than eight percent per annum, and current mortality charge and expense, the
				  policy value would become exhausted at any duration within the 10 years
				  following the report date, the report shall state such duration and note the
				  assumptions as to premium and other factors upon which it is based, together
				  with a notice that coverage might then terminate, subject to the policy grace
				  period provision, unless additional premiums are paid. The report shall contain
				  the notice specified in section
				  54.10(d) 
				  of this Part.
(b) Annually, a
				  statement or statements, including:
(1) A
				  summary of the balance sheet and summary of operations of the separate account,
				  including a calculation of the net investment return, based on the annual
				  statement last filed with the superintendent.
(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 not less than 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
				  superintendent.
(4) Any charges
				  levied against the separate account during the previous year 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 in this paragraph during the preceding fiscal year of
				  investments allocated to the separate account:
(i) The rate shall be calculated by dividing
				  (a) the lesser of purchases or sales of porfolio 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 11 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.
(ii)
				  For the purposes of this item, there shall be excluded from both the numerator
				  and the denominator all United States 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 also 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
				  redemption of portfolio securities by call or maturity.
(iii) 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 subparagraph [ii[ of this
				  paragraph) and the monthly average (but not the individual monthy figures) of
				  the value of the portfolio securities owned by the separate account during the
				  fiscal year.
(iv) 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 adviser 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.