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Committee Substitute House Bill 2072 History

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COMMITTEE SUBSTITUTE

FOR

H. B. 2072

(By Delegate Azinger)


(Originating in the House Committee on the Judiciary)


[March 24, 2009]


A BILL to amend and reenact §33-13A-2 of the Code of West Virginia, 1931, as amended, relating to variable premium adjustable life insurance policies with either fixed accounts or variable accounts; requiring that the Insurance Commissioner propose a legislative rule requiring annual disclosure to policyholders of information regarding their accounts.

Be it enacted by the Legislature of West Virginia:
That §33-13A-2 of the Code of West Virginia, 1931, as amended, be amended and reenacted to read as follows:
ARTICLE 13A. VARIABLE CONTRACTS.

§33-13A-2. Features and benefits.
(a) Any contract providing benefits payable in variable amounts delivered or issued for delivery in this state shall contain a statement of the essential features of the procedures to be followed by the insurance company in determining the dollar amount of such variable benefits. Any such contract under which the benefits vary to reflect investment experience, including a group contract and any certificate in evidence of variable benefits issued thereunder, shall state that such dollar amount will so vary and shall contain on its first page a statement to the effect that the benefits thereunder are on a variable basis.
(b) On or before July 1, 2009, in accordance with the provisions of article three, chapter twenty-nine-a of this code, the Commissioner shall propose for legislative approval rules requiring, without limitation, that any company issuing or delivering a policy providing benefits payable in variable amounts in this state send to its policyholders an annual report illustrating the manner in which the variable benefits will reflect the investment experience of the separate account, and the factors that affect the variability. The rule shall require that the report contain a statement of the investment policy of the separate account; a statement of the net investment returns of the separate account; a statement of the charges levied; and illustrations of benefits payable under the variable life insurance contract under one or more assumed rates of return. The Commissioner shall require the annual report to provide at a minimum the following information: an annual written statement to the policyholder advising how long the policy will remain in force in the event premiums are paid or are not paid; reporting the length the policy will remain in force based on current interest rates and guaranteed interest rates; and reporting examples of the length of time the policy will remain in force assuming an annual rate of return of the existing principal amount accumulated for investment purposes under the policy, of zero percent, six percent and twelve percent.
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