An insurancepolicy that provides for payment of a benefit in a variable amount shall contain a statement of the essential features of the procedure to be followed by the insurer in determining the dollar amount of the variable benefits.
Terms Used In Utah Code 31A-22-411
Application: means a document:
(a)
(i)
completed by an applicant to provide information about the risk to be insured; and
(ii)
that contains information that is used by the insurer to evaluate risk and decide whether to:
(A)
insure the risk under:
(I)
the coverage as originally offered; or
(II)
a modification of the coverage as originally offered; or
(B)
decline to insure the risk; or
(b)
used by the insurer to gather information from the applicant before issuance of an annuity contract. See Utah Code 31A-1-301
Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
Certificate: means evidence of insurance given to:
a risk distributing arrangement providing for compensation or replacement for damages or loss through the provision of a service or a benefit in kind;
(ii)
a contract of guaranty or suretyship entered into by the guarantor or surety as a business and not as merely incidental to a business transaction; and
(iii)
a plan in which the risk does not rest upon the person who makes an arrangement, but with a class of persons who have agreed to share the risk. See Utah Code 31A-1-301
Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
Life insurance: means :
(i)
insurance on a human life; and
(ii)
insurance pertaining to or connected with human life. See Utah Code 31A-1-301
State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
(2)
A variable insurance policy shall contain:
(a)
an appropriate nonforfeiture benefit in lieu of those required by either Section 31A-22-408 or 31A-22-409;
(b)
an appropriate reinstatement provision in lieu of those required by Section 31A-22-407; and
(c)
a grace period provision appropriate to that type of insurance policy in lieu of those required by Section 31A-22-402.
(3)
An individual insurance policy and a certificate issued under a group insurance policy shall conspicuously state on its first page that:
(a)
the dollar amount may decrease or increase according to investment experience; and
(b)
a benefit under the insurance policy is payable on a variable basis.
(4)
A life insurance or annuity policy with a variable benefit issued under a separate account shall, on either the application or the insurance policy, state that the insurer’s liabilities with respect to a variable benefit under the insurance policy are subject to satisfaction only out of the insurer’s variable account assets.
(5)
(a)
A variable insurance policy shall state whether it may be amended as to:
(i)
investment policy;
(ii)
voting rights; and
(iii)
conduct of the business and affairs of a separate account.
(b)
Subject to any preemptive provision of federal law, an amendment of the type described in this Subsection (5) is subject to:
