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

(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.

(5)

(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