Current through Register 2024 Notice Reg. No. 38, September 20, 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 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 Section
2534.3(d) 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 forty-five 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 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 shall be modified to so indicate.
(b) Annually, a statement or statements including:
(1) A summary of the financial statement of the
separate account based on the Annual Statement last filed with the
Commissioner;
(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 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 Commissioner;
(4) 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;
(5) A statement of the portfolio turnover rate as
defined herein during the preceding fiscal year of investments allocated to the
separate account:
(A) 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 of the end of each of the succeeding eleven 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.
(B) For the
purposes of this item, 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 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.
(C) 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 (B) above) 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.
(D) 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 advisor 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;
(8) The names and
principal occupations of each principal executive officer and each director of the
insurer, and
(9) 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% or more of the
outstanding voting securities of the company.
