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: an appropriate nonforfeiture benefit in lieu of those required by either Sectionor; 31A-22-408 31A-22-409 an appropriate reinstatement provision in lieu of those required by Section; and 31A-22-407 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: the dollar amount may decrease or increase according to investment experience; and 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 variable insurance policy shall state whether it may be amended as to: investment policy; voting rights; and conduct of the business and affairs of a separate account. Subject to any preemptive provision of federal law, an amendment of the type described in this Subsectionis subject to: (5) filing under Section; and 31A-21-201 approval by a majority of the policyholders in the separate account.