010.01 In the case
of a policy designated as one for which illustrations will be used, the insurer
shall provide each policyowner with an annual report on the status of the
policy that shall contain at least the following information:
010.01(1) For universal life policies, the
report shall include the following:
010.01(1)(a) The beginning and end date of
the current report period;
010.01(1)(b) The policy value at the end of
the previous report period and at the end of the current report
period;
010.01(1)(c) The total
amounts that have been credited or debited to the policy value during the
current report period, identifying each by type (e.g., interest, mortality,
expense and riders);
010.01(1)(d)
The current death benefit at the end of the current report period on each life
covered by the policy;
010.01(1)(e)
The net cash surrender value of the policy as of the end of the current report
period;
010.01(1)(f) The amount of
outstanding loans, if any, as of the end of the current report period;
and
010.01(1)(g) For fixed premium
policies:
If, assuming guaranteed interest, mortality and expense loads
and continued scheduled premium payments, the policy's net cash surrender value
is such that it would not maintain insurance in force until the end of the next
reporting period, a notice to this effect shall be included in the report;
or
010.01(1)(h) For
flexible premium policies:
If, assuming guaranteed interest, mortality and expense
loads, the policy's net cash surrender value will not maintain insurance in
force until the end of the next reporting period unless further premium
payments are made, a notice to this effect shall be included in the
report.
010.01(2) For all other policies, where
applicable:
010.01(2)(a) Current death
benefit;
010.01(2)(b) Annual
contract premium;
010.01(2)(c)
Current cash surrender value;
010.01(2)(d) Current dividend;
010.01(2)(e) Application of current dividend;
and
010.01(2)(f) Amount of
outstanding loan.
010.01(3) Insurers writing life insurance
policies that do not build nonforfeiture values shall only be required to
provide an annual report with respect to these policies for those years when a
change has been made to nonguaranteed policy elements by the
insurer."
010.02 If the
annual report does not include an in force illustration, it shall contain the
following notice displayed prominently: "IMPORTANT POLICYOWNER NOTICE:
You should consider requesting more detailed information about your
policy to understand how it may perform in the future. You should not consider
replacement of your policy or make changes in your coverage without requesting
a current illustration. You may annually request, without charge, such an
illustration by calling [insurer's phone number], writing to [insurer's name]
at [insurer's address] or contacting your agent. If you do not receive a
current illustration of your policy within 30 days from your request, you
should contact your state insurance department." The insurer may vary the
sequential order of the methods for obtaining an in force
illustration.
010.03 Upon the
request of the policyowner, the insurer shall furnish an in force illustration
of current and future benefits and values based on the insurer's present
illustrated scale. This illustration shall comply with the requirements of
subsections 006.01, 006.02, 007.01 and 007.05. No signature or other
acknowledgment of receipt of this illustration shall be required.
010.04 If an adverse change in non-guaranteed
elements that could affect the policy has been made by the insurer since the
last annual report, the annual report shall contain a notice of that fact and
the nature of the change prominently displayed.
