H. B. 2072
(By Delegate Azinger)
[Introduced February 7, 2009; 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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