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Introduced Version House Bill 2029 History

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hb2029 intr
H. B. 2029


(By Delegate Azinger)

[Introduced February 9, 2005; referred to the

Committee on Banking and Insurance then the Judiciary.]





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 issuance of annual statements including information related to the length of time a policy will remain in force, with or without the payment of premiums, under specific circumstances related to certain rates of return from any existing principal amount accumulated for investment purposes under the policy.

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) All insurers who have sold any contract of insurance that is a variable premium adjustable life insurance policy, with either fixed accounts or variable accounts, shall issue 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. The statement shall include the length the policy will remain in force based on current interest rates and guaranteed interest rates. The statement shall also include 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.




NOTE: The purpose of this bill is to
require insurance companies who provide variable premium adjustable life insurance polices to issue annual statements which include information related to how long a particular policy will remain in force under specific circumstances related to the payment and nonpayment of premiums relative to any existing principal amount accumulated for investment purposes under the policy.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.
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