§431:10D-408  Annual reports and notice topolicy owners.  (a)  In the case of a policy designated as one for whichillustrations will be used, the insurer shall provide each policy owner with anannual report on the status of the policy that shall contain at least thefollowing information:

(1)  For universal life policies, the report shallinclude the following:

(A)  The beginning and end date of the currentreport period;

(B)  The policy value at the end of theprevious report period and at the end of the current report period;

(C)  The total amounts that have been creditedor debited to the policy value during the current report period, identifyingeach by type (e.g., interest, mortality, expense, and riders);

(D)  The current death benefit at the end ofthe current report period on each life covered by the policy;

(E)  The net cash surrender value of the policyas of the end of the current report period; and

(F)  The amount of outstanding loans, if any,as of the end of the current report period; and

(2)  For fixed premium policies: if assumingguaranteed interest, mortality, and expense loads, and continued scheduledpremium payments, the policy's net cash surrender value is such that it wouldnot maintain insurance in force until the end of the next reporting period, anotice to this effect shall be included in the report; or

(3)  For flexible premium policies: if, assumingguaranteed interest, mortality, and expense loads, the policy's net cashsurrender value will not maintain insurance in force until the end of the nextreporting period unless further premium payments are made, a notice to thiseffect shall be included in the report; or

(4)  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; and

(5)  Insurers writing life insurance policies that donot build nonforfeiture values shall only be required to provide an annualreport with respect to these policies for those years when a change has beenmade to nonguaranteed policy elements by the insurer.

(b)  If the annual report does not include anin force illustration, it shall contain the following notice displayedprominently:

"IMPORTANTPOLICY OWNER NOTICE: You should consider requesting more detailed informationabout your policy to understand how it may perform in the future.  You shouldnot consider replacement of your policy or make changes in your coveragewithout requesting a current illustration.  You may annually request, withoutcharge, such an illustration by calling (insurer's phone number), writing to(insurer's name) at (insurer's address), or contacting your agent or producer. If you do not receive a current illustration of your policy within thirty daysfrom your request, you should contact your state insurance department."

(c)  Upon the request of the policy owner, theinsurer shall furnish an in force illustration of current and future benefitsand values based on the insurer's present illustrated scale.  This illustrationshall comply with the requirements of sections 431:10D-404(a), 431:10D-404(b),431:10D-405(a), and 431:10D-405(e).  No signature or other acknowledgment ofreceipt of this illustration shall be required.

(d)  If an adverse change in nonguaranteedelements that could affect the policy has been made by the insurer since thelast annual report, the annual report shall contain a notice of that fact andthe nature of the change shall be prominently displayed. [L 2000, c 252, pt of§2; am L 2003, c 212, §89]