Regarding the prospectus for variable life and variable universal life policies, which statement is not required?

• A. It must disclose detailed information about the investment.
• B. Accompanying sales literature must be complete and not misleading.
• C. The prospectus must be delivered prior to or at the time of the investment sale.
• D. A new prospectus must be issued every 6 months.

Answer: (D)

The concept here is how disclosures work for the investment portion of variable life and variable universal life policies. A prospectus for these policies must disclose detailed information about the investment options and be delivered to the buyer prior to or at the time of the sale. Any sales literature accompanying the product must be complete and not misleading, and the prospectus should be updated when there are material changes to the investment options, costs, or risks. There is no requirement to issue a new prospectus every six months; updates occur as needed when changes arise.