Ga. Comp. R. & Regs. R. 120-2-32-.10 - Reports to Policyholders
Any insurer delivering or issuing for delivery in this State any variable life insurance policies shall mail to each variable life insurance policyholder at his or her last known address the following reports:
(1) within thirty (30) days after each
anniversary of the policy, a statement or statements of the cash surrender
value, death benefit, any partial withdrawal or policy loan, any interest
charge, and any optional payments allowed pursuant to Section (4) of Rule
120-2-32-.05 under the policy
computed as of the policy anniversary date. Provided, however, that such
statement may be furnished within thirty (30) days after a specified date in
each policy year so long as the information contained therein is computed as of
a date not more than sixty (60) days prior to the mailing of such notice. This
statement shall state in contrasting color or distinctive type that, in
accordance with the investment experience of the separate account, the cash
values and the variable death benefit may increase or decrease, and shall
prominently identify any value described therein which may be recomputed prior
to the next statement required by this Section. If the policy guarantees that
the variable death benefit on the next policy anniversary date will not be less
than the variable death benefit specified in such statement, the statement
shall be modified to so indicate. For flexible premium policies, the report
must contain a reconciliation of the change since the previous report in cash
value and cash surrender value, if different, because of payments made (less
deductions for expense charges), withdrawals, investment experience, insurance
charges and any other charges made against the cash value. In addition, the
report must show the projected cash value and cash surrender value, if
different, as of one year from the end of the period covered by the report
assuming that:
(i) planned periodic premiums,
if any, are paid as scheduled;
(ii) guaranteed costs of insurance are
deducted; and
(iii) the net
investment return is equal to the guaranteed rate or, in the absence of a
guaranteed rate, is not greater than zero. If the projected value is less than
zero, a warning message must be included that states that the policy may be in
danger of terminating without value in the next twelve (12) months unless
additional premium is paid.
(2) annually, a statement or statements
including:
(a) a summary of the financial
statement of the separate account based on the annual statement last filed with
the Commissioner;
(b) the net
investment return of the separate account for the last year and, for each year
after the first, a comparison of the investment rate of the separate account
during the last year with the investment rate during prior years, up to a total
of five (5) years when available;
(c) a list of investments held by the
separate account as of a date not earlier than the end of the last year for
which an annual statement was filed with the Commissioner;
(d) any charges levied against the separate
account during the previous year;
(e) a statement of any change, since the last
report, in the investment objective and orientation of the separate account, in
any investment restriction or material quantitative or qualitative investment
requirement applicable to the separate account or in the investment advisor of
the separate account.
(3) For flexible premium policies, a report
must be sent to the policyholder if the amounts available under the policy on
any policy processing day to pay the charges authorized by the policy are less
than the amount necessary to keep the policy in force until the next following
policy processing day. The report must indicate the minimum payment required
under the terms of the policy to keep it in force and the length of the grace
period for payment of such amount.
Notes
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