North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 12 - LIFE AND HEALTH DIVISION › Section .0400 - LIFE: GENERAL NATURE › Section 12 .0441 - REPORTS TO POLICYHOLDERS

Current through Register Vol. 39, No. 2, July 15, 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:
(1) within 30 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 .0436(4) of this Section 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 45 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 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;
(2) annually, if not
				already required by the Securities and Exchange Commission, 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 five years where 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, 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;
(e) a statement of the
				portfolio turnover rate as defined herein 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 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 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 Rule, 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
				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 redemptions 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 (2)(e)(ii) of this Rule] 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.
(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.
(f) 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 or the separate account;
(g) 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;
(h) the names and principal occupations of
				each principal executive officer and each director of the insurer;
				and
(i) 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 percent or more of the
				outstanding voting securities of the company