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.