Sec.38a-433-31. Reports to policyholders

Any insurer delivering or issuing for delivery in this state any Modified Guaranteed Life Insurance Policies shall mail to each Modified Guaranteed Life Insurance Policyholder at his or her last known address the following reports:

(a) Within thirty days after each anniversary of the policy, a report showing the unadjusted cash value, the cash surrender value, death benefit, any partial withdrawal or policy loan, any interest charge, and any optional payments allowed under the policy computed as of the policy anniversary date. The report should clearly indicate that the unadjusted cash value is prior to the application of any surrender charges or market value adjustment formula. It should also specify the surrender charge and market value adjustment used to determine the cash surrender value. Provided, however, that such report may be furnished within thirty 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 days prior to the mailing of such notice. This statement shall state that, in accordance with the market value adjustment formula, the cash values 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. For flexible premium policies, the report must contain a reconciliation of the change since the previous report in unadjusted 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 unadjusted cash value and cash surrender value, if different, as of one year from the end of the period covered by the report assuming that: (1) planned periodic premiums, if any, are paid as scheduled; (2) guaranteed costs of insurance are deducted; and (3) interest is credited at the guaranteed rate or, in the absence of a guaranteed rate, at a rate 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 12 months unless additional premium is paid.

(b) 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.

(Effective September 25, 1992)