Section 2534.6 - Information Furnished to ApplicantsAn insurer delivering or issuing for delivery in this State any variable life insurance policies shall deliver to the applicant for the policy, and obtain a written acknowledgement of receipt from such applicant coincident with or prior to the execution of the application, the following information. The requirements of this Section shall be deemed to have been satisfied by the delivery to the applicant of a prospectus included in a registration statement which satisfies the requirements of the Securities Act of 1933 and which was declared effective by the Securities and Exchange Commission to the extent that the prospectus contains the information required by this Section.
(a) A summary explanation, in non-technical terms, of the principal features of the policy, including a description of the manner in which the variable benefits will reflect the investment experience of the separate account and the factors which affect such variation;(b) A statement of the investment policy of the separate account, including: (1) A description of the investment objective and orientation intended for the separate account and the principal types of investments intended to be made, and(2) Any restriction or limitations on the manner in which the operations of the separate account are intended to be conducted;(c) A statement of the net investment return of the separate account for each of the last ten years for which the separate account was in existence;(d) A statement describing, as an approximate percentage of an annual gross premium for each year and for the life of the policy, all commission or equivalent payments to be paid to all agents or other persons as a result of the proposed sale for each year of the policy for which such payments are to be made. As used in this subsection, "commissions" mean all monies and other valuable consideration, including but not limited to prizes, bonuses paid directly or indirectly to, for, or on behalf of the selling agent as compensation for services in the sale of variable life insurance;(e) A statement of the annual taxes, brokerage fees, and similar costs, and the charges expressed as an annual percentage, levied against the separate account during the previous year;(f) A summary of the method to be used in valuing assets held by the separate account;(g) A summary of the federal income tax liabilities of the policy applicable to the insured, the policy owner, and the beneficiary;(h) If the applicant is furnished illustrations of benefits payable under any variable life insurance contract, such illustrations shall be prepared by the insurer and shall not include projections of past investment experience into the future or attempted predictions of future investment experience; provided that nothing contained herein prohibits use of hypothetical assumed rates of return to illustrate possible levels of benefits, and that it is made clear that such assumed rates are hypothetical only;(i) A prominent statement either in contrasting color or in boldface type at least four points larger than the type size of the largest type used in the text of any provision on the page providing in substance the following information: The purpose of this variable life insurance policy is to provide insurance protection for the beneficiary named therein.
No claim is made that this variable life insurance policy is in any way similar or comparable to a systematic investment plan of a mutual fund.
Cal. Code Regs. Tit. 10, § 2534.6