Current through Register Vol. 54, No. 44, November 2, 2024
(a) An
insurer delivering or issuing for delivery in this Commonwealth variable life
insurance policies shall deliver to the applicant for the policy and obtain a
written acknowledgment or receipt from the applicant, coincident with or prior
to the execution of the application, the following information:
(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 such variation. The
explanation shall include notices of the provisions required by §
82.24(1)(v) and
(6) (relating to mandatory policy
provisions).
(2) A statement of the
investment policy of the separate account, including the following:
(i) A description of the investment objective
intended for the separate account and the principal types of investments
intended to be made.
(ii)
Restrictions or limitations on the manner in which the operations of the
separate account are intended to be conducted.
(3) A statement of the net investment return
of the separate account for each of the last 10 years or a lesser period that
the separate account has been in existence.
(4) A statement of the charges levied against
the separate account during the previous year.
(5) A summary of the method to be used in
valuing assets held by the separate account.
(6) A summary of the Federal income tax
aspects of the policy applicable to the insured, the policyholder and the
beneficiary.
(7) Illustrations of
benefits payable under the variable life insurance contract. The illustrations
shall be prepared by the insurer and may not include projections of the past
investment experience into the future or attempt predictions of future
investment experience. This paragraph does not prohibit 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.
(b) The requirements of this section shall be
deemed to have been satisfied to the extent that a disclosure containing
information required by this section is delivered, in the form of one of the
following:
(1) A prospectus included in a
registration statement which satisfies the requirements of the Securities and
Exchange Commission.
(2) The
information and reports required by the Employee Retirement Income Security Act
of 1974, the act of September 2, 1974 (Pub. L. 93-406, 88 Stat. 829) if the
policies are exempted under section 3(a)(2) from the registration requirements
of the Securities Act of 1933 (15 U.S.C. §
77c(a)(2)).
This section cited in 31 Pa. Code §
82.17 (relating to reports to the
Commissioner).
