31A-22-411. Contracts providing variable benefits.
(1) (a) Any contract which provides for payment of benefits in variable amounts 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. The contract shall contain:
(i) appropriate nonforfeiture benefits in lieu of those required by either Section
31A-22-408 or 31A-22-409;
(ii) appropriate reinstatement provisions in lieu of those required by Section 31A-22-407;
and
(iii) grace period provisions appropriate to that type of contract in lieu of those required
by Section 31A-22-402.
(b) This individual contract and any certificate issued under a group contract shall state
that the dollar amount may decrease or increase and shall conspicuously display on its first page a
statement that the benefits under the contract are payable on a variable basis, with a statement
specifying where the details of the variable provisions are found in the contract.
(c) Life insurance and annuity policies with variable benefits issued under a separate
account shall, on either the application or the policy, state that the insurer's liabilities with respect
to variable benefits under the policy are subject to satisfaction only out of the insurer's variable
account assets.
(2) Any contract subject to Subsection (1) shall state whether it may be amended as to
investment policy, voting rights, and conduct of the business and affairs of any segregated
account. Subject to any preemptive provision of federal law, this type of amendment is subject to
filing under Section 31A-21-201 and approval by a majority of the policyholders in the
segregated account.
Amended by Chapter 74, 1991 General Session
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Last revised: Thursday, May 28, 2009