375.1521. Annual report to policy owner, contents.
Annual report to policy owner, contents.
375.1521. 1. In the case of a policy designated as one for whichillustrations will be used, the insurer shall provide each policy ownerwith an annual report on the status of the policy that shall contain atleast the following information:
(1) For universal life policies, the report shall include thefollowing:
(a) The beginning and end date of the current report period;
(b) The policy value at the end of the previous report period and atthe end of the current report period;
(c) The total amounts that have been credited or debited to thepolicy value during the current report period, identifying each by type(e.g., interest, mortality, expense and riders);
(d) The current death benefit at the end of the current report periodon each life covered by the policy;
(e) The net cash surrender value of the policy as of the end of thecurrent report period;
(f) The amount of outstanding loans, if any, as of the end of thecurrent report period; and
(g) For fixed premium policies if, assuming guaranteed interest,mortality and expense loads and continued scheduled premium payments, thepolicy's net cash surrender value is such that it would not maintaininsurance in force until the end of the next reporting period, a notice tothis effect shall be included in the report; or
(h) For flexible premium policies if, assuming guaranteed interest,mortality and expense loads, the policy's net cash surrender value will notmaintain 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:
(a) Current death benefit;
(b) Annual contract premium;
(c) Current cash surrender value;
(d) Current dividend;
(e) Application of current dividend; and
(f) Amount of outstanding loan.
(3) Insurers writing life insurance policies that do not buildnonforfeiture values shall only be required to provide an annual reportwith respect to these policies for those years when a change has been madeto nonguaranteed policy elements by the insurer.
2. If the annual report does not include an in-force illustration, itshall contain the following notice displayed prominently: "IMPORTANTPOLICY OWNER NOTICE: You should consider requesting more detailedinformation about your policy to understand how it may perform in thefuture. You should not consider replacement of your policy or make changesin your coverage without requesting a current illustration. You mayannually request, without charge, such an illustration by calling..................... (insurer's phone number), writing to................... (insurer's name) at ....................... (insurer'saddress) or contacting your agent. If you do not receive a currentillustration of your policy within thirty 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.
3. Upon the request of the policy owner, the insurer shall furnish anin-force illustration of current and future benefits and values based onthe insurer's present illustrated scale. This illustration shall complywith the requirements of subsections 1 and 2 of section 375.1509 andsubsections 1 and 5 of section 375.1512. No signature or otheracknowledgment of receipt of this illustration shall be required.
4. If an adverse change in nonguaranteed elements that could affectthe policy has been made by the insurer since the last annual report, theannual report shall contain a notice of that fact and the nature of thechange prominently displayed.
(L. 1998 S.B. 722 § 13)