31A-22-411. Insurance policies providing variable benefits.

289 words·~1 min read·/ut/title-31a/chapter-22/31a-22-411

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)An insurance policy that provides for payment of a benefit in a variable amount shall contain a statement of the essential features of the procedure to be followed by the insurer in determining the dollar amount of the variable benefits.

(2)A variable insurance policy shall contain:

(a)an appropriate nonforfeiture benefit in lieu of those required by either Section 31A-22-408 or 31A-22-409 ;

(b)an appropriate reinstatement provision in lieu of those required by Section 31A-22-407 ; and

(c)a grace period provision appropriate to that type of insurance policy in lieu of those required by Section 31A-22-402 .

(3)An individual insurance policy and a certificate issued under a group insurance policy shall conspicuously state on its first page that:

(a)the dollar amount may decrease or increase according to investment experience; and

(b)a benefit under the insurance policy is payable on a variable basis.

(4)A life insurance or annuity policy with a variable benefit issued under a separate account shall, on either the application or the insurance policy, state that the insurer's liabilities with respect to a variable benefit under the insurance policy are subject to satisfaction only out of the insurer's variable account assets.

(a)A variable insurance policy shall state whether it may be amended as to:

(i)investment policy;

(ii)voting rights; and

(iii)conduct of the business and affairs of a separate account.

(b)Subject to any preemptive provision of federal law, an amendment of the type described in this Subsection

(5)is subject to:

(i)filing under Section 31A-21-201 ; and

(ii)approval by a majority of the policyholders in the separate account.

Amended by Chapter 10 , 2010 General Session