Life insurance.

Existing law generally regulates classes of insurance, including life insurance. Existing law requires a life insurance policy illustration, which is a presentation or depiction that includes nonguaranteed elements of a policy of life insurance over a period of years, to include specified information and conform to specified requirements to ensure an illustration is understandable and does not mislead consumers. Existing law requires a life insurance policy to include specified disclosures, including requiring an individual life insurance policy or annuity contract that is initially delivered or issued for delivery on and after January 1, 1990, to include a notice stating that, after receipt of the policy by the owner, the policy may be returned by the owner for cancellation, as specified. This bill would entitle a policy owner, in deciding whether to cancel a policy, to review any illustration, policy, or other disclosure or information of any kind. This bill would authorize a producer to receive compensation or other incentives if the amount was not material to the recommendation of a sales transaction of a life insurance policy, other than a policy solely providing term life with no cash value, or an annuity. The bill would require a life insurance agent to make specified disclosures to a prospective policyholder, including if the agent receives monetary or nonmonetary compensation that is contingent on selling a life insurance policy or annuity or if the insurer or agent who makes a statement about the potential tax advantages of a life insurance policy. The bill would require an illustration or policy to disclose fees and charges, and surrender fees and charges in specified forms. The bill would require a prospective policyholder to sign a copy of those disclosures, and would require the insurer to retain copies of the signed disclosures, as specified. The bill would require a life agent who sells life insurance, other than term life with no cash value, to satisfactorily complete 4 hours of training prior to soliciting individual consumers in order to sell nonterm life insurance. The bill would require a life agent who sells variable life insurance to satisfactorily complete 2 hours of training prior to each license renewal. The bill would require the training to be approved by the Insurance Commissioner and to consist of topics related to, among other things, regulations related to variable life insurance. The bill would become operative on January 1, 2024.