Code of Massachusetts Regulations
211 CMR - DIVISION OF INSURANCE
Title 211 CMR 95.00 - Variable Life Insurance
Section 95.05 - Charges Against a Separate Account
Universal Citation: 211 MA Code of Regs 211.95
Current through Register 1531, September 27, 2024
(1) An insurer must clearly disclose in writing, at the time of solicitation or contemporaneously with delivery of the policy, all charges that may be made against the separate account.
(2) An insurer may deduct only the following from the separate account:
(a) taxes or reserves for taxes attributable
to investment gains and income of the separate account as required by
applicable state or federal law;
(b) actual cost of reasonable brokerage fees
and similar reasonable direct acquisition and sales costs incurred in the
purchase or sale of separate account assets;
(c) actuarially determined mortality costs of
insurance (tabular costs) and the release of separate account
liabilities;
(d) reasonable charges
for administrative expenses and investment management expenses, including
internal costs attributable to the investment management of assets of the
separate account;
(e) a reasonable
charge, at a rate specified in the policy, for mortality and expense
guarantees;
(f) any amounts in
excess of those required to be held in the separate account;
(g) charges for incidental insurance
benefits; and
(h) any other type of
charge that the Commissioner has determined to be fair and
reasonable.
(3) The description or charges made against the separate account shall contain the following information:
(a) all charges shall
be identified by their purpose, including, but not limited to, identification
by kind of administrative charge, investment management charge, cost of
insurance or other charge;
(b) all
charges shall be clearly described together; and
(c) the description shall specify guaranteed
maximum charges (in dollar amounts or proportions) for each type of charge and
the time period covered by such charge.
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