INFORMATION AND APPLICATIONS
§ 82.61. Information for applicants.
(a) An insurer delivering or issuing for delivery in this Commonwealth variable life insurance policies shall deliver to the applicant for the policy and obtain a written acknowledgment or receipt from the applicant, coincident with or prior to the execution of the application, the following information:
(1) A summary explanation, in nontechnical 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. The explanation shall include notices of the provisions required by § 82.24(1)(v) and (6) (relating to mandatory policy provisions).
(2) A statement of the investment policy of the separate account, including the following:
(i) A description of the investment objective intended for the separate account and the principal types of investments intended to be made.
(ii) Restrictions 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 a lesser period that 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. The illustrations shall be prepared by the insurer and may not include projections of the past investment experience into the future or attempt predictions of future investment experience. This paragraph does not prohibit the use of hypothetical assumed rates of return to illustrate possible levels of benefits if it is made clear that the assumed rates are hypothetical only.
(b) The requirements of this section shall be deemed to have been satisfied to the extent that a disclosure containing information required by this section is delivered, in the form of one of the following:
(1) A prospectus included in a registration statement which satisfies the requirements of the Securities and Exchange Commission.
(2) The information and reports required by the Employee Retirement Income Security Act of 1974, the act of September 2, 1974 (Pub. L. 93-406, 88 Stat. 829) if the policies are exempted under section 3(a)(2) from the registration requirements of the Securities Act of 1933 (15 U.S.C. § 77c(a)(2)).
Source The provisions of this § 82.61 adopted August 4, 1978, effective September 5, 1978, 8 Pa.B. 2171; amended April 28, 1989, effective April 29, 1989, 19 Pa.B. 1835; corrected June 30, 1989, effective retroactive to April 29, 1989, 19 Pa.B. 2754. Immediately preceding text appears at serial pages (137054) to (137056).
Cross References This section cited in 31 Pa. Code § 82.17 (relating to reports to the Commissioner).
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