# CA Bulletin 1987-03: Requirements for Issuance of Variable Life Insurance in California

> California · Agency guidance · In force

URL: https://www.frixlaw.com/law-library/statutes/CA_INS_B_1987-03

## Section

- **Citation:** CA Bulletin 1987-03
- **Heading:** Requirements for Issuance of Variable Life Insurance in California
- **Jurisdiction:** California
- **Kind:** Agency guidance
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** California Department of Insurance Bulletins / Requirements for Issuance of Variable Life Insurance in California

## Text

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r, . STATE
CALIFORNIA
·'DEPARTMENT OF INSURANCE
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45 Fremont Str~t
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·. ·San··Francisco California 94105
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Amended November 1, 19921
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TO:
All Admitted Insurers Authorized to Transact
· Life Insurance and Other Interested Persons
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SUBJECT:
Requiremf;nts for Issuance of V aµable Life
Insurance in California
This bulletin amends Bulletin 87-3 to authorize and regulate group variable life insurance·
policies in addition to the previously authorized: individual variable life insurance policies.
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TABLE OF CONTENTS
PREF;ACE
Section
Page
1.
Autllo.rity' ..................... ,...................... 2
2.
Pur-pose ...•...........· . . .. !. • • • • . . . • . . .. ·. • • . . . . . 2
3.
Effective _Date . . · . . . . . . . . , . . . ·. i·
j · . . . . . . . . . . . . . . . . . . . . -2
4.
Duration . . . . . . . . . . . . . . . . . • :. . ·• . . . . . . . . . . . . '! •
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5.
- Effect on Existing Regulations -. . . • • ~ . • . . • . ~- . . . . . ; . . .--; ; . 3
6.
C: ,::. Bµlletirr super*'1es t]je ·:~xistillg~ ·tegulatioh.s· Iot-1so'!'long'' ·af:tn~i:Btill~tin' ~eriiarns ··.in :-.. ; .
L-.~ · . ,:: ·· · •: "·""....,,,,.........,.,. constitutes a complete-set:of. gtiid~lih~s ..for.atl .form~/:or.vadahki)fre,fos~~ce;· ··supplementing_.· .: ... .. ··. ·
the basic· statutes pertaining to this business. Please note,· however, that the Bulletin does not
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repeat statutory provisions. Therefore, Insu~ce Code Section 10506 ~t seq. should also be
reviewed.
6. Comparison to NAIC ModelRecuiation. In=many res~ts~ particularly regarding individual
policy fonn requirements, this Bulletin follo~s .the ·substiince- of the Model Variable L1fe
Insurance Regulation promulgated by the Natidnal Association of Insurance Commissioners ·
. (NAIC) in 1982. The Bulletin does not, however, follow the model NAIC regulation in all
respects
hould also be
reviewed.
6. Comparison to NAIC ModelRecuiation. In=many res~ts~ particularly regarding individual
policy fonn requirements, this Bulletin follo~s .the ·substiince- of the Model Variable L1fe
Insurance Regulation promulgated by the Natidnal Association of Insurance Commissioners ·
. (NAIC) in 1982. The Bulletin does not, however, follow the model NAIC regulation in all
respects. In additiQn to expressly authorizing· ~d regulating group variable life insurance, th~
Bull~tin differs significantly from that model r~gulation in many other areas; such as materials
to be filed when applying for variable life insuriance qualification, computation of cash values
for flexible premiuJ.?1 policies, standards for inyestment of domestic insurers' separate account
assets, and mandatory disclosures to applicants ,and policyholders.
. Consequently, insurers which "ti~lieve that their ·proposed variable life insuran~ , policies or
separate account operations comply with the l'fAIC model regulation should not automatically
assume that they likewise comply with this Bulletin. They should verify complian~
0.with the
Bulletin's provisions.
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7. Inguiries. Specific questions :regarding this ;Bulletin should be r~ferred to the Legal Division,
Coiporate Affairs Bureau, California Insurance Department, 45 Fremont Street, San Francisco,
California ~4105 .. ·Telephone: (415) 904-5665.
REQUIREMENTS FOR VARIABLE.LIFE INSURANCE
. POLICIES AND SEPARATE ACCOUNTS
. l. Definitions. As used in ·this Bulletin:
he
Bulletin's provisions.
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7. Inguiries. Specific questions :regarding this ;Bulletin should be r~ferred to the Legal Division,
Coiporate Affairs Bureau, California Insurance Department, 45 Fremont Street, San Francisco,
California ~4105 .. ·Telephone: (415) 904-5665.
REQUIREMENTS FOR VARIABLE.LIFE INSURANCE
. POLICIES AND SEPARATE ACCOUNTS
. l. Definitions. As used in ·this Bulletin:
(a)
"Affiliate" of an insurer m~~ any person, directly or indirectly, controlling,
. controlled by, or under common control with such insurer; any person who regularly furnishes
investment advice to· such insurer with respect to its separate accounts for which a specific fee .
or commission is charged; c;>r any director, officer~ partner, or employee ofany such insurer, •
'controlling or controlled person, or person providing investment advice or any member of the ·
· immediate family of such person.
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(b)
"Agent" means any person, corporation, partnership, or other legal entity which
is licensed by this State as a life insurance ag¢D;t,.

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·,•:.,, ·t.·=,. •: :·:>". \·;•:_ ?::· ,,·;:::i:•·\c1:-:,-~_,,1:~hPJ:} can .. ,·-m~~:),P._:!e~ar.·.:ett~:}n~JY~~u . .'J>.91icies of a ~rson, whether through the ownership, of voting
·securities, by contract other that a commercial contract for goods or non-manag~t.nent.. services,
or otherwise, unless the power is the result. of ~ official position with or corporate office held · -•·
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.by the perso~. Control shall be presumed to exist if any person, directly or indirectly, owns, ·
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controls, holds with the power to vot~, or holds pi:oxies representing more than.(10) percent of
the voting securities of any other person1 · This presumption may be rebutted by a showing made
to.the satisfaction of the Commissioner that.control does.notexistin.fact
ate office held · -•·
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.by the perso~. Control shall be presumed to exist if any person, directly or indirectly, owns, ·
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controls, holds with the power to vot~, or holds pi:oxies representing more than.(10) percent of
the voting securities of any other person1 · This presumption may be rebutted by a showing made
to.the satisfaction of the Commissioner that.control does.notexistin.fact. The Commissioner
may determine, after furnishing all persons in anterest notice ~a· ~pportunity to be, heard .and
making specific findings of fact to support s~ch determination, that control exists in fact~
..: notwithstanding the absence of a presumption t?.that_ effect
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(h)
"Flexible premium policy" means. any variabie. life insurance· policy other than a
scheduled premium-policy as specified in sub~tion (r) of this See:tion. ·
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(i)
-"Genera( account" means.-all assets of the insurer other than assets in separate .
~ccounts established pursu.ant to Section 10506 jof the Insurance Code of this.State, ·or pursuant
to the corresponding section· of the insurance la!',vs ·of the state of_domicile of _a foreign insurer,
whether or not for variable life insurance.
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. G)
"Inciden~ insurance benefit" ·q1eans ·all ins~rance benefits in a variable life
il}surance policy, other than the variable death b~nefit and.the minimum death benefit, including
but not limited to accidental death and dismem9erment benefits, disability benefits, guaranteed
insurability optjons, family income, or term riders.
reign insurer,
whether or not for variable life insurance.
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"Inciden~ insurance benefit" ·q1eans ·all ins~rance benefits in a variable life
il}surance policy, other than the variable death b~nefit and.the minimum death benefit, including
but not limited to accidental death and dismem9erment benefits, disability benefits, guaranteed
insurability optjons, family income, or term riders.
(k)
"May"· is permissive.
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(1)
"Minimum death b~nefit:.'. means. the :amount of the guaranteed death benefit,· other
.' : . ~-. ;. .: l ;_- .. ::. ,.;; tj'iaif'incideritaI-insutan~· .~enefits, .pjy~ble under;a variable· life in~u~ce policy regardless. of
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,.. ; . ·... ·.·::.the -investmenf.perfonnaifoe of--th~ ~~paraie: accotinti : .. .- ;.... ':-: :·>?·: .. -._:---::' .._. _:_::_:·:_ :: '·-: .: ...;\ :: .. __ ::\.~_~:: ·:·}:/',.':, ·: ·:: ::, _./..·.·' '., :·.:; :: ':- :::. ,:-:: ·, ,:'.": ::(,:-../.":wj;:
A:m.t>ng., the f~ptor~ tl}e. CO.llJ~Ssioner.. m~y con~ider µl det~rµ'uiµng wJi~ther ·an
(-···. · .·.. -'·· .-\: •\:::::'. .;'·;msiirerrs~'-riietliod -~ of' 'operati.o~ hi':.&nnectiori :w,iih ·v~abie:: lif¢:)nstinui~"t~p~i :~ce9unts, ·.. · ,..:., ··· ·
; ., •"v·io:••',\(;.(;,;: :·~· I ·assets/mvestmerits and policies would be hazardous to poli;cyholders·are the·.following: .'···.' . . ...
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1.
·The amount and type of assets that:ar~ not readily marketable. Readily marketable
assets are cash or assets having a readily ascertaipable market value and which can be marketed
before the close of the next business day.
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Investments where ultimate loss could equal or exceed the initial amount investC9.
3.
The extent of borrowing to·acquite investments.
(b)
Filing for Approval t~ do Business in This State.
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The Commissioner shall ,::equire that an insurer, before it delivers or issues for. delivery
any variable life. insurance policy· in this S~te, ·file with this Department the . following
·information for the consideration of the Commi$sioner in making the determination reqµired by.
subsection (a)(2) of this Section. Insurers may: satisfy the requirements of subsectionsf(b)(l),
tate.
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The Commissioner shall ,::equire that an insurer, before it delivers or issues for. delivery
any variable life. insurance policy· in this S~te, ·file with this Department the . following
·information for the consideration of the Commi$sioner in making the determination reqµired by.
subsection (a)(2) of this Section. Insurers may: satisfy the requirements of subsectionsf(b)(l),
(2), (3) and (4) of this Section by filing current copies of the proposed variable life:fusurance
policy and all presently-effective prospectuses and statements of additional information as
described in Section 6 of the Bulletin which pertain to the insurer's variable l1fe:.insurance
policy, separate account, and·any investment companies or other funds or pools of assets serving
as investments for the separate account.
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(1)
Copies of, and a general descrip~on of; all the varia~le life insurance policies it
intends to issue;
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(2)
A general description of the methods of operation ofthe variable nfe insurance
business of the insurer; including methods of distribution of policies and the names of those
persons or firms proposed to supply consu~ting, investment, administrative, custodial. or.
distribution services to the insurer;
. (3) . With respect to any separate account maintained by an insurer for variable life
· insurance policy, a statement of the investment policy the insurer intends to follow for. the.
investment of the assets held in such separate account, and a statement of procedures for
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changing such investl_llent policy. The statement of investment policy shall include a description
of the investment objectives intended for the separate_ account;
(4)
· A description of any investment advisory services contemplated as required by
Section 5(i) -of this Bulletin;
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sets held in such separate account, and a statement of procedures for
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changing such investl_llent policy. The statement of investment policy shall include a description
of the investment objectives intended for the separate_ account;
(4)
· A description of any investment advisory services contemplated as required by
Section 5(i) -of this Bulletin;
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(5)
The statement i;equired by subsection (t)(l) of this Section;
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.- . ·•. :-..~·, ~, •••, ... :·: ·: .• :·· ·.•. ~~: ;:.. _:, s;·;. "· ;.:t~;....... ..:··~-;.;J~;::i~ ·....~',1 .:_·_ ....: '.',_ -·~:~.:r other materials of any
kind in connection with its variable life insurance business · in this State which is· false,
misleading, deceptive, or inaccurate. Variable life insurance sales material," advertising material,
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and descriptive literature shall be subject to the additional requirements contained in the
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The Commissioner shall not approve any variable life in~urance fo~ filed pursuant to this
. Bulletin, whether an individual policy, group master policy or certificate, unless it conforms to
the requirements of this Section. ·
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(a)
Filing of Variable Life Insurance P-,:,.on:. ·requesf-td_:!;.policyh~lders,•,::-ap1Wcarits: :and,:: th~ a11:commissions or equivalent payments to be paid
· to all agents· or other persons as a result ·of the proposed· sale for each year of the policy for
which such payments are to~-~ made. As used in this subsection, "commissions" means all
monies and other ·valuable consideration, including' but not limited to prizes, bonuses paid
directly or indirectly to, for, or on behalf of the selling agent as compensation for services in
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the sale of variable life insural_lce; ·
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.. .·.>. · . ·: ...:. ·(~).....·--~ s~t~~e~t" ~fth~, annual :taxes,)rokerag~ fees, ~d si~ilar. ~sts and charg~-;~ · '· :_ ·.· .··:
expressed "as· a dollar 'amount and ·as· an annual percentage, levied against the ~parate account ... ,., ...
during the previous year;
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(f)
A summary of the method to ·1':e used in valuing assets held by the · separate
account;
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.. .·.>. · . ·: ...:. ·(~).....·--~ s~t~~e~t" ~fth~, annual :taxes,)rokerag~ fees, ~d si~ilar. ~sts and charg~-;~ · '· :_ ·.· .··:
expressed "as· a dollar 'amount and ·as· an annual percentage, levied against the ~parate account ... ,., ...
during the previous year;
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(f)
A summary of the method to ·1':e used in valuing assets held by the · separate
account;
(g)
-A summary of the federal income tax .aspects of the policy applicable to the·
insured,. the policyholder, and the beneficiary; .
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(h)
illustrations of benefits payable under the variable life insurance contract. Such:
illustrations shall be prepared by the msurer and shall not include projections of past investment
experience into the future or attempted predictj.ons of future investments experience, provided
that nothing contained herein prohibits 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 ..
Any sales µlustration shown or furnished in connection. with the sale of variable life
insurance must conform with the following requirements, except that these requirements only
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· apply to the variable portion of policies with fixed and variable funding options. S.ul>part;(9) of
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· this subsection specifically pertains to variable life insurance contracts offering both fixed and
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variable funding options.
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(1) ... The hypothetical. interest rates used to illustrate accumulated policy values must
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be an annual effective gross rate after brokerage expenses and prior to any deduction for taxes,
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expenses and policy charges.
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ns. S.ul>part;(9) of
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· this subsection specifically pertains to variable life insurance contracts offering both fixed and
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variable funding options.
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(1) ... The hypothetical. interest rates used to illustrate accumulated policy values must
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be an annual effective gross rate after brokerage expenses and prior to any deduction for taxes,
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expenses and policy charges.
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(2)
If the illustrations of accumulated contract values are shown, then; for the highest
_ interest rate used, one illustration must be based solely upon guarantees contained in the policy
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being illustrated. (For example, if the illustration includes the effect of mortality charges and
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administrative charges which are below the guaranteed maximums for such charges, an
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illustration must be prepared which involves the effect of the maximum charges.)
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(3)
Except for illustrations contained in a prospectus pertaining to the policy being
illustrated, the pattern of premium payments used in an illustration should be the initial pattern
requested by the proposed policyholder at inception or upon changes in face amount requested
by the policyholder.
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(4)
If the illustrated policy provides ·for multiple investment options, the illustration
may either use an asset charge wh~ch is reasonably representative, or use the asset charge of a
particular option. The illustration should clearly identify the _asset charge and either label it
"hy~thetical" or identify the option.
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policyholder.
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(4)
If the illustrated policy provides ·for multiple investment options, the illustration
may either use an asset charge wh~ch is reasonably representative, or use the asset charge of a
particular option. The illustration should clearly identify the _asset charge and either label it
"hy~thetical" or identify the option.
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(5)
The ill1:1stration must disclose the transaction charges which will be levied against
..·... : ..... ,.::. J}Je COI)t1:p.Gt -~µse: Qf transactions. requested in accordance. witlJ, rights and·privileges specified
.. • . . : • :: in -the q,ntr;ict. ·Any-charge.fo! the exercise qf a right or privilege upon· which· the illustration
.. . ·, ,· is based ·,must be reflected in the illustrated values. The nature of any'-other su,e:h charges must
be disclosed in a clear statement accompanying such illustrations.· (For example, a charge to
· switch from one investment option or death benefit option to another.)
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(6)
A clear statement must be made, following the table of illustrated accumulated
. values, that use of hypothetical investiµent re~ults does not in any way represent actual results
···or suggest that such results will be achieved, apd .also must indicate that the· policy values· which·
actually arise will differ from those shown whenever the actual· investment results differ from
the hypothetical rates illustrated. Assumptions ~pon which illustrations are based must be clearly .
disclosed.
· (7) . Any sales illustration to a prospective policyholder must accurately reflect· the
policy . • being presented; · Misleading statements, captions or·. other misrepresentations are
prohibited.
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The requested sales illustration must be printed clearly and legibly on paper. An
.illustration displayed on a computer screen may be used· in.addition to, but not as; a.substitute
for, a paper copy.
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n to a prospective policyholder must accurately reflect· the
policy . • being presented; · Misleading statements, captions or·. other misrepresentations are
prohibited.
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The requested sales illustration must be printed clearly and legibly on paper. An
.illustration displayed on a computer screen may be used· in.addition to, but not as; a.substitute
for, a paper copy.
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(9)
Variable life insurance contracts· off~ring both fixed and variable funding options
shall comply with the following requirements:
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(A) . Illustrations of the v~able fu~d~ng option must comply with this subsection 6(b).
(B)
Illustrations of the fixed funding· option must show accumulated policy values on
the basis of guaranteed rates. One or more additional rates may also be shown, but such rates
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may not exceed current rates.
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(C)
A summary illustration.may be given in which results from comparable illustrated
and hypothetical interest rates are combined~
Such summary must cross-reference to the
accompanying separate illustrations of the fixed and variable funding options .. ·
. 7.
Ap_plications.
'Except as provided in subsection (d) herein, the application for a variable life insuraf!,ce policy
shall contain:
(a)
A prominent statement that the death benefit may be variable or fixed under
specified conditions;
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(b)
A prominent statement that cash ~alues ·may increase or -decrease in acccirdance
.-Y .-.:-.,· ··: with-·th~ experience of the sep.arate account (supject to any speqifi~ mWm_uw g~t~s);.
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.,, (c)
·Questions designed to elicit' inf~¢1ation whi~h -~~abl~-th~:ins~rer to determine
the suitability of variable life insurance for the '.applicant.
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(b)
A prominent statement that cash ~alues ·may increase or -decrease in acccirdance
.-Y .-.:-.,· ··: with-·th~ experience of the sep.arate account (supject to any speqifi~ mWm_uw g~t~s);.
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.,, (c)
·Questions designed to elicit' inf~¢1ation whi~h -~~abl~-th~:ins~rer to determine
the suitability of variable life insurance for the '.applicant.
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(d)
Where a group policy will be non--contributory and owned by a trust for the benefit
of e~ployees and/or retirees, (a) and (b) need not be disclosed to each prospective certificate­
holder in the application and the questions under (c) ~eed not be asked of each prospective
certificateholder.
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8.
Reports to Policyholders.
Except as provided in subsection (d) herein, any insurer delivering.or issuing for delivery in this·
State any variable life insurance policy shall mail to each variable life insurance policyho~der. at
his or her last known address tb~ following reports. The requirements of th1s Section shall, be ..
deemed to have been satisfied by so mailing to each such policyholder the information required . .
by this Section in the form of copies of reports,: disclosures or filings submitted to the: Securities
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and Exchange Commission.
· (a)
. An annual statement of the ca~h surrender· value, death benefit, any partial
withdrawal or policy loan, any interest charge,. and any optional payments allowed pursuant. to
Section 3(d) under the policy. Such statement shall be furnished_ within thirty days after the
policy· anniversary date or any other specified date in each policy year.. All information
contained therein must be computed as of a date not more _than sixty (60) days prior to the.
mailing of the statement. This statement shall state that, in accordance with the investment
s allowed pursuant. to
Section 3(d) under the policy. Such statement shall be furnished_ within thirty days after the
policy· anniversary date or any other specified date in each policy year.. All information
contained therein must be computed as of a date not more _than sixty (60) days prior to the.
mailing of the statement. This statement shall state that, in accordance with the investment
. experience of the separate account, the cash va;lues and the variable death benefit may' increase
_ or decrease, and shall prominently identify: any value described therein which may be
recomputed prior to the next statement required by this ·subsection. If the policy guaran~ees ~at
the variable death benefit on the next policy aJliiiversary date will not be less. than the variable
death benefit specified in such statement, the statement shall be modified to so indicate. -For
flexible premium policies, the report must contain a reconciliation of the change since the
previous report in cash value and cash surrender value, if different, because of payments made
(less deductions for expense charges), withdrawals, investment experience, insurance charges /
and any other charges made against the cash: value. · In addition, the report must show the
projected cash value and cash surrendeF value~ if different, as of one year from the end of the
period covered by the report assuming that: (i) planned periodic premiums, if any, are paid as
scheduled; (ii) guaranteed costs of insurance ax:e deducted; and (iii) the net return is equal to the
guaranteed rate or, in.the absence of a guaranteed rate,-is not greater than zero. If the projected
. value is less than zero, a warning message must be included that states that the policy I!lay be· ·
in danger of terminating without value in the n~xt 12 months unless additional premium is paid.
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of insurance ax:e deducted; and (iii) the net return is equal to the
guaranteed rate or, in.the absence of a guaranteed rate,-is not greater than zero. If the projected
. value is less than zero, a warning message must be included that states that the policy I!lay be· ·
in danger of terminating without value in the n~xt 12 months unless additional premium is paid.
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· (b)
Annually, a statement or statements including:
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A summary'of the finan:cialstatenterit.'o{the· separate account based on the annual
statement last filed with the Commissioner; ' . . . I .
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(2)
The net investment return of the ~parate account for the l~t year and, for each
year after the first, a comparison of the investment rate of the separate account during the last
year with the investment rate of the separate ad.count during _the last year •with the irivestment
rate during prior years, up to. a total of not less; than five years when available;
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(3)
A list of investments· held by the ~parate acco~nt as of a d~~ not earlier th~ the
end of the last year for which an· annual statement was filed with the Commissioner;
(4)
Any charges, taxes and brokeragel fees levied against the separate accountduring
the previous year, ea~h .expressed as a dollar amount-and as a percentage of the assets of the:..
separa~ account, and the total amount express~ as a dollar amount and as a percentage;
acco~nt as of a d~~ not earlier th~ the
end of the last year for which an· annual statement was filed with the Commissioner;
(4)
Any charges, taxes and brokeragel fees levied against the separate accountduring
the previous year, ea~h .expressed as a dollar amount-and as a percentage of the assets of the:..
separa~ account, and the total amount express~ as a dollar amount and as a percentage;
(5)
A statement of the portfolio turnover rate, as defined. herein, during the preceding . ·. ·
fiscal year of investments allocated to the separate account.
(A)
The rate shall be calculated by dividing (A) the lesser· of purchases or sales of
portfolio securities for the particular fiscal year ·by .(B) the monthly average of the value of the
· portfolio securities owned by the· ·separate acc,ount during the particular fiscal year.
Such
-monthly average shall be calculated by totaling the values of the portfolio securities· as of the
beginning and end_ of the first '111onth of Jhe particular fiscal year and as of the end of each ·of
the succeeding eleven months, and· dividing the sum by 13,. except that the. averag_e value of
securities for which market quotations are not ~vailable may be based upon the value of such
securities as of the end of the preceding fiscal qu~rs.
"
(B)
For the purposes of this item, there shall be excluded from both the numerator and
· the denominator all U.S. Government securities (short-term and long-term) and all other
securities whose maturities at the· time of acqui:sitlon were ·one year or less. 'Purchases shall_·
jncludt:: any cash paid upon the conversion ofon~ portfolio security into another. /Purchases shall ·
also include the cost of rights or warrants purchased. Sales shall include the nefproceeds of the ·
sale o(rights or warrants. Sales shall also incl~de the net proceeds of redemptions of portfolio .
: secu?,ties by call or maturity.
e of acqui:sitlon were ·one year or less. 'Purchases shall_·
jncludt:: any cash paid upon the conversion ofon~ portfolio security into another. /Purchases shall ·
also include the cost of rights or warrants purchased. Sales shall include the nefproceeds of the ·
sale o(rights or warrants. Sales shall also incl~de the net proceeds of redemptions of portfolio .
: secu?,ties by call or maturity. .
·
·
·
'
(C)
The insurer shall s~ow, in addition .to the calculated portfolio turnover rate, both
t4e amount of the purchases and the am.ount or the sales (calculated as prescribed in [B] above)
and .the monthly average (but not the individual monthly figures) of the value of the portfolio
securities owned by the separate account during the fiscal year.
.,
(D)
The insurer may, if it wishes, ma:ke a:ny statement or explanation with respect ta
any significan~ variations in the . portfolio. ~urrtover rate during .the three fiscal y~s next
~28­

1
,•1"..
••'
='
..,
preceding;
j
•
. · .
(6)
A stateme6t.o(ari:{ch~ge, stijqe':the t~t "i'~P.9rt/in ~e· investment objective· and ·
orientation of the sep~te· ~~µ~(._µf·aiiy ·_m.yest_ment' restriction or material quantitative or·
qualitative investment requirement applicable: to the separate account, or in ·the inyestment ..·,.
· advisor of the separate account;
· · · · ,
.
I
.
(7)
The name of each broker or dealer handling portfolio transactions ori behalf of the
separate· account in which the insurer or an afqliate has any material direct or indirect interest,
and ~e natu~e of such transac~ons and the amount of compensation received by each such
broker or dealer from business originating.with the separate account during the preceding fiscal
year;
(8)
The names and principal occupa~ons·of each principal exec~tive officer and each
· director of the insurer, arid
·
·
in which the insurer or an afqliate has any material direct or indirect interest,
and ~e natu~e of such transac~ons and the amount of compensation received by each such
broker or dealer from business originating.with the separate account during the preceding fiscal
year;
(8)
The names and principal occupa~ons·of each principal exec~tive officer and each
· director of the insurer, arid
·
·
(9)
The names of all parents of the insurer and the basis of control of the insurer, and
the name of any person who is known to own, of record or beneficially, 10% or more of the
outstanding voting securities of the company. · .
(c)
For flexible premium policies, a ·report µiust be sent to the policyholder if the
amounts available under the policy on any processing da:y to pay the charges authorized by the .
policy are less than the amount neces·sary to keep the policy in_force until the next following
policy processing day~ The report must indicate the minimum payment required under the terms
of the policy to keep it in force and the length -of the grace period for payment of such amount.
(d)
Where a group policy is non-contributory and owned by a trust for the benefit of
employees and/or retirees, the reports required in this Section. need not be made to each
certificateholder.
9.
Qualifications of Agents for the Sale of Variable Life Insurance.
(a) Authorization to Sell Variable Lif~ Insurance. No person may sell or offer for sale
in this State any variable life insurance policy unless such person is a life agent and has filed
with the Commissioner, in a form satisfactory'. to the Commissioner; evidence that su~h person
holds any Ucense or authorization which may pe required for the solicitation oi sale of variable
life insurance.
·
·
(b) Reports ofDisciplinary Actions. A'py person qualified in this State under this Section
to sell or offer to sell variable life insurance shall immediately report to the Commissioner:
the Commissioner, in a form satisfactory'. to the Commissioner; evidence that su~h person
holds any Ucense or authorization which may pe required for the solicitation oi sale of variable
life insurance.
·
·
(b) Reports ofDisciplinary Actions. A'py person qualified in this State under this Section
to sell or offer to sell variable life insurance shall immediately report to the Commissioner:
(l) Any suspension or revocation of his agent's license in any 0th.er state or territory of
the United States;·
·
~29­
,..
-
~
,. .

---......
....-.
'.
(2) The imposition of.any dtsciplinary sancti~n, including suspension or expulsi~n from
· ·
. • ·:membership;· ·suspension, or revocation ·of or- denial of registratio~;·iinpo~cfup:orVHim'.• 6.fariy
.
. . ; . . . ' ·· national secuiities"-excliange, or national securities· association' Of:?IlY,· iederal~~ state:,: or' territbrial . . i ..
.....•·agency with jurisdiction 'over securities or variable life insurance; .. '....
. ...... ":".."· .·.-.
. ....·. . .
(3) Any judgement or injunction entered against him on the basis of conduct deemed to
have involved fraud, deceit, misrepresentation; or violation of any insurance or securitj.es law
or regulation.
I
(c) Refusal to Qualify Agent ·to Sell V~able Life Insurance: Suspension, Revocation,
I .
· or Nonrenewal of Qualification. The Commissioner may reject any application or suspend or
I
- revoke or refuse to renew any agent's authority under this· Section to sell or offer to sell variabl~ _
i
I
life insurance upon any ground that would bar such applicant or such agent from being licensed
I
to sell other life insurance contracts in this State. The rules governing any proceeding relating
!
to the suspension or revocation of an agent'~ license shall also govern any proceeding for
suspension or revocation of an agent's authority to sell or offer. to sell variable life insurance.
. .
.
. .
10.
Severability Provision
t would bar such applicant or such agent from being licensed
I
to sell other life insurance contracts in this State. The rules governing any proceeding relating
!
to the suspension or revocation of an agent'~ license shall also govern any proceeding for
suspension or revocation of an agent's authority to sell or offer. to sell variable life insurance.
. .
.
. .
10.
Severability Provision .
.If any provision of this Bull~tin or the applicati.on ·the~eof to any person or circumstance is for
any reason held to be invalid, the·remainder of the Bulletin and the application of such provision
to other persons or circumstances shall not be affected thereby.
:
I
! .
Insurance Commissioner
-30­
'
I

## Nearby sections

- [CA Bulletin 1980-06 Brokers' Fees and other Similar Fees](https://www.frixlaw.com/law-library/statutes/CA_INS_B_1980-06.md)
- [CA Bulletin 1980-12 Unlawful Title Rebates](https://www.frixlaw.com/law-library/statutes/CA_INS_B_1980-12.md)
- [CA Bulletin 1987-03 Requirements for Issuance of Variable Life Insurance in California](https://www.frixlaw.com/law-library/statutes/CA_INS_B_1987-03.md)
- [CA Bulletin 1991-08 Filing of Data for Determining Life Insurer Valuation (California Insurance Code Section 10480); Issuance of Valuation Certificates](https://www.frixlaw.com/law-library/statutes/CA_INS_B_1991-08.md)
- [CA Bulletin 1993-03 Assembly Bill 1672 ("Small Employer Health Insurance Reform").](https://www.frixlaw.com/law-library/statutes/CA_INS_B_1993-03.md)
- [CA Bulletin 1993-03A Assembly Bill 1672 ("Small Employer Health Insurance Reform") as amended.](https://www.frixlaw.com/law-library/statutes/CA_INS_B_1993-03A.md)
- [CA Bulletin 1993-04 Assembly Bill 1672](https://www.frixlaw.com/law-library/statutes/CA_INS_B_1993-04.md)
- [CA Bulletin 1993-04A Assembly Bills 1672 and 1768](https://www.frixlaw.com/law-library/statutes/CA_INS_B_1993-04A.md)
- [CA Bulletin 1993-06 Dividend Reporting](https://www.frixlaw.com/law-library/statutes/CA_INS_B_1993-06.md)
- [CA Bulletin 1994-07 Valuation Interest Rates.](https://www.frixlaw.com/law-library/statutes/CA_INS_B_1994-07.md)
- [CA Bulletin 1994-09A "Actively at Work" or "Not Disabled" Requirements in Small Employer Health Insurance.](https://www.frixlaw.com/law-library/statutes/CA_INS_B_1994-09A.md)
- [CA Bulletin 1994-11 Disclosure Required in Condominium Homeowner's Policies. (California Insurance Code (CIC) Section 10087.5)](https://www.frixlaw.com/law-library/statutes/CA_INS_B_1994-11.md)
- [CA Bulletin 1995-04 Scope of the Permissible Escrow Activities of Title Insurers, Underwritten Title Companies, and Controlled Escrow Companies](https://www.frixlaw.com/law-library/statutes/CA_INS_B_1995-04.md)
- [CA Bulletin 1995-06 Immediate Payment of Claims.](https://www.frixlaw.com/law-library/statutes/CA_INS_B_1995-06.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CA_INS_B_1987-03. Check the current official text before relying on it. Not legal advice.