Ins 2.13(7)(b)6.6. Any other item required by statute or administrative rule for fixed benefit life insurance policies which is not inconsistent with this section.

Ins 2.13(7)(b)7.7. A provision for nonforfeiture insurance benefits. The insurer may establish a reasonable minimum cash value below which any nonforfeiture insurance options will not be available.

Ins 2.13(7)(c)(c) Each modified guaranteed life insurance policy issued in this state shall provide that the policyholder may borrow at least 75% of the policy’s cash surrender value after the policy has been in force for at least 3 years unless the policy includes a policy loan provision that is no less favorable to the policyholder. Each policy loan provision shall provide all of the following:

Ins 2.13(7)(c)1.1. The amount borrowed shall bear interest as provided under s. 632.475, Stats.

Ins 2.13(7)(c)2.2. The insurer shall deduct any indebtedness from the proceeds payable on death.

Ins 2.13(7)(c)3.3. The insurer shall deduct any indebtedness from the cash surrender value upon surrender or in determining any nonforfeiture benefit.

Ins 2.13(7)(c)4.4. For scheduled premium policies, whenever the indebtedness exceeds the cash surrender value, the insurer shall give notice of any intent to cancel the policy if the excess indebtedness is not repaid within 31 days after the date the notice is mailed. For flexible premium policies, whenever the total charges authorized by the policy that are necessary to keep the policy in force until the next policy processing day exceed the amount available under the policy to pay those charges, the insurer shall mail the policyholder a report containing the information specified in par. (g) 2.

Ins 2.13(7)(c)5.5. If the policy specifies a minimum amount which may be borrowed, the minimum may not apply to any automatic premium loan provision.

Ins 2.13(7)(c)6.6. The policy loan provision does not apply if the policy is under an extended insurance nonforfeiture option.

Ins 2.13(7)(c)7.7. A policyholder who has not exercised the policy loan provision may not be disadvantaged by exercising it.

Ins 2.13(7)(c)8.8. Upon the exercise of any policy loan provision, the insurer shall withdraw from the separate account the amount paid to the policyholder and shall return that amount to the separate account upon repayment, except that a stock insurer may provide the amount for a policy loan from the general account.

Ins 2.13(7)(d)(d) A modified guaranteed life insurance policy or related form issued in this state may, in substance, include one or more of the following provisions:

Ins 2.13(7)(d)1.1. An exclusion for suicide within 2 years after the date the policy takes effect, except that, if the policy includes an increased death benefit as a result of the policyholder’s application after the date the policy takes effect, the exclusion applies only to the amount of the increased benefit.

Ins 2.13(7)(d)2.2. Incidental insurance benefits on a fixed or variable basis.

Ins 2.13(7)(d)3.3. If the policy is issued on a participating basis, an offer to pay dividends in cash and other dividend options.

Ins 2.13(7)(d)4.4. A provision allowing a policyholder to elect in writing, either in the application or after issuance of the policy, an automatic premium loan on a basis not less favorable than the requirements under par. (c), except that the insurer may restrict this provision to the payment of not more than 2 consecutive premiums.

Ins 2.13(7)(d)5.5. A provision allowing the policyholder to make partial withdrawals.

Ins 2.13(7)(d)6.6. Any other policy provision approved by the commissioner.

Ins 2.13(7)(e)1.1. An insurer issuing any modified guaranteed life insurance policy in this state shall, before or at the time the application is taken, deliver to the applicant and obtain from the applicant a written acknowledgment of receipt of all of the following information:

Ins 2.13(7)(e)1.a.a. A non-technical summary of the principal features of the policy, including a description of the manner in which the nonforfeiture benefits will be affected by the market-value adjustment formula and the factors which affect the variation. The summary shall include the notice required by par. (b) 1. b.

Ins 2.13(7)(e)1.b.b. A summary of the federal income tax aspects of the policy applicable to the insured, the policyholder and the beneficiary.

Ins 2.13(7)(e)1.c.c. Illustrations, prepared by the insurer, of benefits payable under the policy. No illustration may include a projection of past investment experience into the future or a prediction of future investment experience. This subparagraph does not prohibit the use of hypothetical assumed rates of return to illustrate possible levels of benefits if the insurer makes it clear that such assumed rates are hypothetical only.

Ins 2.13(7)(e)2.2. An insurer may satisfy the requirements of subd. 1. by delivering to the policyholder a disclosure containing the information required by subd. 1., either in the form of a prospectus which is part of an effective registration statement under the securities act of 1933, 15 USC 77a to 77aa or, if the policies are exempt from the registration requirements of the securities act of 1933, all information and reports required by the federal employee retirement income security act of 1974, 29 USC 1001 to 1461.

Ins 2.13(7)(f)1.1. Immediately before the signature line, a statement that amounts payable under the policy are subject to a market-value adjustment before a date or dates specified in the policy.