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.