Which of the following information is NOT required to be disclosed to policyowners of Variable Life policies?

To understand why the correct answer is that the basis and frequency for valuing the assets is not required to be disclosed to policyowners of Variable Life policies, it's important to recognize the nature of disclosure requirements in life insurance policies, particularly for Variable Life policies.

Variable Life policies are designed to provide both insurance and investment components, allowing policyowners to allocate their cash value among various investments. The regulatory framework focuses on providing policyowners with the necessary information to understand the performance and status of their investment within the policy.

While the frequency and method of asset valuation might be relevant for internal company processes or accounting purposes, it isn't typically included as required information for policyowners. Instead, the emphasis is placed on more direct and pertinent data that impact the policyholder's understanding of their investment's performance, such as the number and value of units held, net withdrawals, and details about premiums and charges. This information helps policyowners make informed decisions regarding their policies and investments.

By focusing on the essential performance indicators and financial transactions, regulators ensure that policyholders have a clear picture of how their investments are doing, without the potentially complex details regarding asset valuation methods, which might not be actionable or comprehensible for policyowners.