20-2607

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:

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 sections 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 sections 1001 through 1461) if the
policies are exempt from the registration requirements of the securities act of 1933.