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 acknowledgement of receipt from such applicant
coincident with or prior to the execution of the application, the following
information: The requirements of this Rule shall be deemed to have been
satisfied to the extent that a disclosure containing information required by
this Rule is delivered, either in the form of (1) 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 (2) 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.
(1) a summary explanation, in nontechnical
terms, 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 provision required by Sections
(3)(a)5. and (3)(f) of Rule
120-2-32-.05;
(2) a statement of the investment policy of
the separate account, including:
(a) a
description of the investment objective and orientation 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 ten (10) years for which the
separate account was 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 levels of benefits
if it is made clear that such assumed rates are hypothetical only;
(8) a statement in a separate paragraph in
boldface type which is at least four (4) 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:
(a) The
purpose of this variable life insurance policy is to provide insurance
protection for the beneficiary named therein.
(b) No claim is made that this variable life
insurance policy is in any way similar or comparable to a systematic investment
plan of a mutual fund.
Notes
Ga. Comp. R.
& Regs. R.
120-2-32-.08
O.C.G.A. Secs.
33-2-9,
33-11-36.
Original Rule entitled
"Information Furnished to Applicants" adopted. F. Oct. 18, 1979; eff. Nov. 7, 1979.
Repealed: New Rule of same title adopted. F.
Oct. 2, 1985; eff.
Dec. 1, 1985, as specified by
the Agency.
Submitted for Publishing:
Apr. 6,
2007.