Arizona Laws 20-2607. Information to applicants
A. An insurer that delivers or issues for delivery in this state a variable life insurance policy shall deliver the following information to the applicant for the policy:
Terms Used In Arizona Laws 20-2607
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Contract: A legal written agreement that becomes binding when signed.
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- Net investment return: means the rate of investment return in a separate account that is applied to the benefit base. See Arizona Laws 20-2601
- Separate account: means a separate account established pursuant to section 20-651 or the insurance laws of the insurer's state of domicile if the insurer is a foreign or alien insurer. See Arizona Laws 20-2601
- United States: includes the District of Columbia and the territories. See Arizona Laws 1-215
- Variable life insurance policy: means an individual policy that provides for life insurance, the amount or duration of which varies according to the investment experience of any separate account or accounts that are established and maintained by the insurer pursuant to section 20-651 or the insurance laws of the insurer's state of domicile if the insurer is a foreign or alien insurer. See Arizona Laws 20-2601
1. A summary explanation of the principal features of the policy. The summary explanation shall be in nontechnical terms and shall include a description of the manner in which the variable benefits will reflect the investment experience of the separate account and the factors that affect the variation. The explanation shall include notice of the requirements of section 20-2604, subsection D, paragraph 1, subdivision (e) and paragraph 7.
2. A statement of the investment policy of the separate account, including a description of both:
(a) The investment objectives of the separate account and the principal types of investments that will be made.
(b) The restrictions or limitations on the manner in which the operations of the separate account will be conducted.
3. A statement of the net investment return of the separate account for each of the last ten years, or if the separate account has been in existence for less than ten years, a statement of the net investment return of the separate account for each of the years that the separate account has been in existence.
4. A statement of the charges that were levied against the separate account during the previous year.
5. A summary of the method the insurer will use in valuing the assets that are held by the separate account.
6. A summary of the federal income tax aspects of the policy that apply to the insured, the policyholder and the beneficiary.
7. Illustrations of benefits that are payable under the variable life insurance contract. The insurer shall prepare the illustrations. The illustrations shall not include projections of past investment experience into the future or attempted 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 the illustration makes it clear that the assumed rates are hypothetical only.
B. This section is satisfied if a disclosure that contains the information required by this section is delivered to the applicant. The disclosure shall either:
1. Be a prospectus that satisfies the requirements of the securities act of 1933 (15 United States Code §§ 77a through 77aa) and that the securities and exchange commission declares effective.
2. Contain the information and reports that are required by the employee retirement income security act of 1974 (29 United States Code §§ 1001 through 1461) if the policies are exempt from the registration requirements of the securities act of 1933.