Code of Maryland Regulations
Title 31 - MARYLAND INSURANCE ADMINISTRATION
Subtitle 09 - LIFE INSURANCE AND ANNUITIES
Chapter 31.09.02 - Variable Life Insurance
Section 31.09.02.07 - Information Furnished to Applicants

(1) A summary explanation, in nontechnical terms, of the principal features of the policy, including a description of the manner in which the variable benefits will reflect the investment experience of the separate account and the factors which affect the variation. This explanation shall include notices of the provisions required by Regulation .04D(1)(e) and D(6) of this chapter.

(2) A statement of the investment policy of the separate account, including:

(3) A statement of the net investment return of the separate account for each of the last 10 years for which the separate account was in existence.

(4) A statement describing, as an approximate percentage of an annual gross premium for each year and for the life of the policy, all commission or equivalent payments to be paid to all agents or other persons as a result of the proposed sale for each year of the policy for which payments are to be made. As used in this subsection, commissions means all monies and other valuable consideration, including but not limited to prizes, bonuses paid directly or indirectly to, for, or on behalf of the selling agent as compensation for services in the sale of variable life insurance.

(5) A statement of the annual taxes, brokerage fees, and similar costs, and the charges, expressed as an annual percentage, levied against the separate account during the previous year.

(6) A summary of the method to be used in valuing assets held by the separate account.

(7) A summary of the federal income tax liabilities of the policy applicable to the insured, the policy owner, and the beneficiary.

(8) If the applicant is furnished illustrations of benefits payable under a variable life insurance contract, these illustrations shall be prepared by the insurer and may not include projections of past investment experience into the future or attempted predictions of future investment experience, provided that nothing in this subsection prohibits the use of hypothetical assumed rates of return to illustrate possible levels of benefits if it is made clear that the assumed rates are hypothetical only.

(9) A prominent statement either in contrasting color or in boldface type at least four points larger than the type size of the largest type used in the text of any provision on the page, providing in substance the following information:

(1) A prospectus included in a registration statement relating to the policies which satisfies the requirements of the federal Securities Act of 1933 and which was declared effective by the Securities and Exchange Commission; or

(2) All information and reports required by the federalEmployee Retirement Income Security Act of 1974 if the policies are exempted from the registration requirements of the federal Securities Act of 1933 pursuant to § 3(a)(2).