Section R590-177-9 - Annual Report; Notice to Policy Owners(1) If a policy is designated as one for which an illustration will be used, the insurer shall provide each policy owner with an annual report on the status of the policy that shall contain the information in Subsection (1)(a) or (1)(b). (a) For a universal life insurance policy, the report shall include the following:(i) the beginning and end date of the current report period;(ii) the policy value at the end of the previous report period and at the end of the current report period;(iii) the total amounts that have been credited or debited to the policy value during the current report period, identifying each by type, such as interest, mortality, expense, and riders;(iv) the current death benefit at the end of the current report period on each life covered by the policy;(v) the net cash surrender value of the policy as of the end of the current report period;(vi) the amount of any outstanding loans as of the end of the current report period; and(vii) if, assuming guaranteed interest, mortality and expense loads, and any required premium payments, the policy's net cash surrender value is such that it would not maintain insurance in force until the end of the next reporting period, a notice shall be included in the report.(b) For any other policy, where applicable:(i) the current death benefit;(ii) the annual contract premium;(iii) the current cash surrender value;(iv) the current dividend;(v) the application of current dividend; and(vi) the amount of any outstanding loan.(c) An insurer writing a life insurance policy that does not develop nonforfeiture values is only required to provide an annual report for those years when a change has been made to non-guaranteed policy elements by the insurer.(2)(a) If the annual report does not include an in force illustration, it shall prominently display the following notice: "IMPORTANT POLICY OWNER NOTICE: You should consider requesting more detailed information about your policy to understand how it may perform in the future. You should not consider replacement of your policy or make changes in your coverage without requesting a current illustration. You may annually request, without charge, such an illustration by calling (insurer's phone number), writing to (insurer's name) at (insurer's address) or contacting your producer. If you do not receive a current illustration of your policy within 30 days from your request, you should contact your state insurance department."
(b) The insurer may vary the sequential order of the methods for obtaining an in force illustration.(3) Upon the request of a policy owner, an insurer shall furnish an in force illustration of current and future benefits and values based on the insurer's present illustrated scale. (a) The illustration shall comply with the requirements of Subsections R590-177-5(1), R590-177-5(2), R590-177-6(1), and R590-177-6(5).(b) No signature or acknowledgment of receipt of this illustration is required.(4) If, since the last annual report, an insurer has made an adverse change in a non-guaranteed element that could affect the policy, the annual report shall prominently display a notice describing the nature of the change.Utah Admin. Code R590-177-9
Amended by Utah State Bulletin Number 2023-03, effective 1/24/2023