Section R. 500.863 - Information required to be delivered to policy applicantRule 23. The requirements of this rule 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, 15 U.S.C. S77A et seq., and which was declared effective by the securities and exchange commission to the extent that the prospectus contains the information required by this rule. An 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 acknowledgment of receipt from such applicant coincident with, or before, the execution of the application, the following information:
(a) A summary explanation, in nontechnical 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. Such explanation shall include notices of the provisions required by R 500.850(a)(iv) and (f).(b) A statement of the investment policy of the separate account, including both of the following: (i) A description of the investment objective and orientation intended for the separate account and the principal types of investments intended to be made as required by R 500.843(c)(iii).(ii) 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 10 years for which the separate account was in existence.(d) A statement of the annual taxes, brokerage fees, and all other costs, including all allowable charges whether expressed as an annual percentage or otherwise, levied against the separate account during the previous year.(e) A summary of the method to be used in valuing assets held by the separate account.(f) A summary of the federal income tax liabilities of the policy applicable to the insured, the policy owner, and the beneficiary.(g) Illustrations of benefits payable under any variable life insurance contract 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; however, nothing contained in this subdivision shall be construed to prohibit the use of hypothetical assumed rates of return to illustrate possible levels of benefits if it is made clear that such assumed rates are hypothetical only.Mich. Admin. Code R. 500.863