§ 27-62-9 - Annual report – Notice to policy owners.
SECTION 27-62-9
§ 27-62-9 Annual report – Notice topolicy owners. – (a) In the case of a policy designated as one for which illustrations will beused, the insurer shall provide each policy owner with an annual report on thestatus of the policy that shall contain at least the following information:
(1) For universal life policies, the report shall include thefollowing:
(i) The beginning and end date of the current report period;
(ii) The policy value at the end of the previous reportperiod and at the end of the current report period;
(iii) The total amounts that have been credited or debited tothe policy value during the current report period, identifying each by type(e.g., interest, mortality, expense and riders);
(iv) The current death benefit at the end of the currentreport period on each life covered by the policy;
(v) The net cash surrender value of the policy as of the endof the current report period;
(vi) The amount of outstanding loans, if any, as of the endof the current report period; and
(vii) For fixed premium policies: if, assuming guaranteedinterest, mortality and expense loads and continued scheduled premium payments,the policy's net cash surrender value is such that it would not maintaininsurance in force until the end of the next reporting period, a notice to thiseffect shall be included in the report; or
(viii) For flexible premium policies: if, assuming guaranteedinterest, mortality and expense loads, the policy's net cash surrender valuewill not maintain insurance in force until the end of the next reporting periodunless further premium payments are made, a notice to this effect shall beincluded in the report.
(2) For all other policies, where applicable:
(i) Current death benefit;
(ii) Annual contract premium;
(iii) Current cash surrender value;
(iv) Current dividend;
(v) Application of current dividend; and
(vi) Amount of outstanding loan.
(3) Insurers writing life insurance policies that do notbuild nonforfeiture values shall only be required to provide an annual reportwith respect to these policies for those years when a change has been made tonon-guaranteed policy elements by the insurer.
(b) If the annual report does not include an in forceillustration, it shall contain the following notice displayed prominently:"IMPORTANT POLICY OWNER NOTICE: You should consider requesting more detailedinformation about your policy to understand how it may perform in the future.You should not consider replacement of your policy or make changes in yourcoverage without requesting a current illustration. You may annually request,without charge, a current illustration by calling [insurer's phonenumber], writing to [insurer's name] at [insurer'saddress] or contacting your agent. If you do not receive a currentillustration of your policy within thirty (30) days from your request, youshould contact your state insurance department." The insurer may vary thesequential order of the methods for obtaining an in force illustration.
(c) Upon the request of the policy owner, the insurer shallfurnish an in force illustration of current and future benefits and valuesbased on the insurer's present illustrated scale. This illustration shallcomply with the requirements of §§ 27-62-5 and 27-62-6. No signatureor other acknowledgment of receipt of this illustration shall be required.
(d) If an adverse change in non-guaranteed elements thatcould affect the policy has been made by the insurer since the last annualreport, the annual report shall contain a notice of that fact and the nature ofthe change prominently displayed.