SEC Adopts Groundbreaking Disclosure Improvements for Variable Insurance Contracts
Author: Stephen E. Roth.; Dodie C. Kent.; Ronald D. Coenen Jr..
Source: Volume 53, Number 13, July 15 2020 , pp.151-159(9)
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Abstract:
After more than a decade of work, and collaboration with industry, the SEC has finally adopted a new disclosure framework for registered variable annuity contracts and variable life insurance policies. In this article, the authors discuss this new framework, including the optional variable contract summary prospectuses, online delivery of underlying fund prospectuses, withdrawal of the “Great-West” line of no-action letters, and grandfathering options for “Great-Wested” contracts. They close with important dates and next steps.Keywords: Rule 498A; Layered Disclosure Framework; Initial Summary Prospectus (“ISP”); Updating Summary Prospectus (“USP”); Fund Prospectus Delivery; “Great-West” No-Action Letters
Affiliations:
1: Eversheds Sutherland US LLP; 2: Eversheds Sutherland US LLP; 3: Eversheds Sutherland US LLP.