1. (1) No material change in the investment policy of a separate account established pursuant to section 4240 of the Insurance Law shall be made unless the insurer has notified the superintendent, in writing, of its intention to make such change at least 60 days prior to submitting it for any other authorization as may be required, or such shorter period as the superintendent may permit, and he has not disapproved it within such period.
2. (2) No material change in the investment policy of a separate account established by a foreign or alien insurer, pursuant to the section of the insurance law of such insurer's state of domicile which corresponds to section 4240, shall be made unless the insurer has filed such change with the superintendent, in writing, at least 60 days prior to submitting for any other authorization as may be required, or such shorter period as the superintendent may permit.

3. (b) Such material change in the investment policy of a separate account shall be disapproved if such material change is deemed to be detrimental to the interests of the policyholders in such separate account or render the insurer's operations hazardous to the public or its policyholders in this State.

   1. (1) Any policyholder objecting to a proposed material change in the investment policy of a separate account, which change subsequently becomes effective, shall be given the option to convert within 60 days after the effective date of such change or the receipt of a notice of the options available, whichever is later, without evidence of insurability, under one of the following options, to a general account life insurance policy issued by the insurer, or a subsidiary of the insurer, its parent, or an affiliate licensed to do a life insurance business in this State:

      1. (i) If the policy is a scheduled premium policy, as defined by section 54.1(l) of this Part and is in force on a premium-paying basis, an insurer may offer either or both of the following options:

         1. (a) conversion as of the original issue age to a substantially comparable form of general account life insurance, based on the insurer's premium rate for a general account life insurance policy at the original issue age for an amount of insurance not exceeding the death benefit of the variable life insurance policy on the date of conversion;

         2. (b) conversion as of the attained age to a substantially comparable form of general account life insurance for an amount of insurance not exceeding the excess of the death benefit of the variable life insurance policy on the date of conversion over:

            1. (1) its net cash surrender value on the date of conversion if the policyholder elects to surrender the variable life policy for its net cash surrender value; or
            2. (2) the death benefit payable under any paid-up insurance option if the policyholder elects such nonforfeiture option under the variable life policy.
      2. (ii) If the policy is in force as paid-up variable life insurance, then conversion will be to a substantially comparable paid-up general account life insurance policy for an amount of insurance not exceeding the death benefit of the variable life insurance policy on the date of conversion.
      3. (iii) If the policy is a flexible premium policy as defined by section 54.1(m) of this Part and is in force, an insurer must offer a conversion to a substantially comparable flexible premium general account life insurance policy for an amount of insurance not exceeding the death benefit of the variable life insurance policy on the date of conversion.
   2. (2) If conversion is made pursuant to clause (i)(a) of this paragraph or subparagraph (1)(ii) of this subdivision, such conversion shall be made in accordance with rules filed with the superintendent not less than 30 days prior to their implementation.

   (c)

(a)