Minnesota Administrative Rules
Agency 120 - Commerce Department
Chapter 2750 - VARIABLE LIFE INSURANCE
ADDITIONAL INFORMATION; FOREIGN COMPANIES; AGENT QUALIFICATIONS
Part 2750.4100 - INFORMATION FURNISHED TO APPLICANTS
Current through Register Vol. 49, No. 13, September 23, 2024
The requirements of this part shall be deemed to have been satisfied to the extent that a disclosure containing information required by this part is delivered, either in the form of a prospectus included in a registration statement relating to the policies which satisfies the requirements of the Securities Act of 1933 and which was declared effective by the Securities and Exchange Commission; or all information and reports required by the Employee Retirement Income Security Act of 1974 if the policies are exempted from the registration requirements of the Securities Act of 1933 pursuant to section 3(a)(2) thereof. An insurer delivering or issuing for delivery in this state any variable life insurance policies shall deliver to the applicant for the policy, and obtain a written acknowledgment of receipt from the applicant coincident with or prior to the execution of the application, the following information:
A. 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. The explanation must include notices of the provision required by part 2750.1300, item A, subitem (5) and Minnesota Statutes, section 61A.03, subdivision 1, paragraph (f), clause (3).
B. A statement of the investment policy of the separate account, including:
C. A statement of the net investment return of the separate account for each of the last ten years or a lesser period the separate account was in existence.
D. A statement of the charges levied against the separate account during the previous year.
E. A summary of the method to be used in valuing assets held by the separate account.
F. A summary of the federal income tax aspects of the policy applicable to the insured, the policyholder, and the beneficiary.
G. Illustrations of benefits payable under the variable life insurance contract. The illustrations must be prepared by the insurer and must not include projections of past investment experience into the future or attempted predictions of future investment experience, provided that nothing contained herein prohibits 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.
Statutory Authority: MS s 61A.20
