Life insurance.

Existing law requires an insurer transacting life insurance in California to register its policies with the Insurance Commissioner and comply with specified provisions of the Insurance Code relating to, among others, reserve liabilities, capital requirements, and disclosure requirements for replacement of life insurance policies. Existing law regulates illustrations used in the sale of a life insurance policy. Existing law requires an insurer to provide notice to the policyholder of a life insurance policy upon an increase of premium if that policy provides for premium changes, as specified. For a policy in effect on or after April 1, 2019, this bill would require an insurer to provide a summary notice to a policyholder of a flexible premium life insurance policy whenever the policy is subject to an adverse change in the current scale of nonguaranteed elements, as defined. The bill would require the summary notice to include specified information and language about the adverse change. The bill would also require an insurer, for a flexible premium life insurance policy for which illustrations are used in effect on or after April 1, 2019, to provide an inforce illustration of current and future benefits and values whenever the policy is subject to an adverse change in the current scale of nonguaranteed elements. The bill would impose the notice requirements to an adverse change that is scheduled to take effect on or after July 1, 2019, and would impose the illustration requirement to an adverse change that is scheduled to take effect on or after July 1, 2020.