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Virginia Administrative Code (Last Updated: January 10, 2017) |
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Title 14. Insurance |
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Agency 5. State Corporation Commission, Bureau of Insurance |
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Chapter 80. Rules Governing Variable Life Insurance |
Section 300. Information furnished to applicants
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Article VII. Information Furnished to Applicants
An insurer delivering or issuing for delivery in this Commonwealth variable life insurance policies shall deliver to the applicant for the policy or certificate, and obtain a written acknowledgement of receipt from such applicant coincident with or prior to the execution of the application, the following information. The requirements of this Article shall be deemed to have been satisfied to the extent that a disclosure containing information required by this Article is delivered, either in the form of (i) a prospectus included in the requirements of the Securities Act of 1933 (15 USC § 77a et seq.) and which was declared effective by the Securities and Exchange Commission; or (ii) all information and reports required by the Employee Retirement Income Security Act of 1974 (29 USC § 1001 et seq.) if the policies are exempted from the registration requirements of the Securities Act of 1933 pursuant to Section 3(a)(2) thereof.
1. A summary explanation, in non-technical 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. Such explanation must include notices of the provisions required by § 38.2-3301 and § 38.2-3304 of the Code of Virginia regarding the 10 day free look and entire contract provisions of the policy or certificate.
2. A statement of the investment policy of the separate account, including:
a. A description of the investment objectives intended for the separate account and the principal types of investments intended to be made; and
b. any restriction 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 such lesser period as 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. Such illustrations shall be prepared by the insurer and shall 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 level of benefits if it is made clear that such assumed rates are hypothetical only.
8. If there are any guaranteed elements to the accumulation of cash values, an illustration or proposal must separately display:
a. The guaranteed cash values and
b. The guaranteed loan values if the loan values are less than 100% of the cash values.
9. If the loan value is less than 100% of the cash surrender value such fact must be shown as a percentage of cash surrender value and such fact must be prominently displayed on any proposal or in any illustration.
Historical Notes
Derived from Regulation 26, Case No. INS920077, Article VIII, § 1, eff. June 15, 1992.