West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11D - Variable Life Insurance › Section 114-11D-9 - Annual Report to Policyholders and Certificate Holders

Current through Register Vol. XLI, No. 28, July 12, 2024
9.1. An insurer delivering or issuing for delivery
				in this state a variable life insurance policy shall mail to each variable life
				insurance policyholder at his or her last known address the following reports:
9.1.a. Within thirty (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, any
				optional payments allowed pursuant to subsection 4.5 of this rule under the policy
				computed as of the policy anniversary date. However, the statement may be furnished
				within thirty (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 sixty (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 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 the statement, the statement shall be modified to so indicate. For
				flexible premium policies, the report shall 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 shall 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 planned periodic premiums, if any, are paid as scheduled;
				guaranteed costs of insurance are deducted; and 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 shall be included that
				states that the policy may be in danger of terminating without value in the next
				twelve (12) months unless additional premium is paid.
9.1.b. An annual statement or statements that
				include:
9.1.b.1. A summary of the financial
				statement of the separate account based on the last annual statement filed with the
				Commissioner;
9.1.b.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 (5) years when available;
9.1.b.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 Commissioner;
9.1.b.4. Any charges levied against the separate
				account during the previous year; and
9.1.b.5. 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.
9.1.c. For
				flexible premium policies, a report shall 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 until the next following policy processing day. The report shall 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 the amount.