Chapter 9: legal considerations III. Claims G. Assets that are not General Assets, Special Deposits and Letters of Credit


Variable Products Backed by Separate Accounts NOT Registered Under the 1940 Act ("Exempt SAs")



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Variable Products Backed by Separate Accounts NOT Registered Under the 1940 Act ("Exempt SAs").

  • Separate Accounts supporting Variable Products issued in connection with certain qualified retirement plans as specified in Section 3(a)(2) of the 1933 Act and Section 3(c)(11) of the 1940 Act. Such Separate Accounts are not registered under the 1940 Act and the Variable Products are not registered under the 1933 Act.

  • Separate Accounts supporting private placement (i.e., not registered) Variable Products under Section 4 of the 1933 Act and either Section 3(c)(1) or Section 3(c)(7) of the 1940 Act. Very limited in number and qualification of policyholders. Such Separate Accounts are not registered under the 1940 Act.

  • Even though these insurance products are exempted from SEC registration, they are still deemed to be securities,  and are subject to the anti-fraud provisions of the federal securities laws.   The offering documents (e.g., private placement memorandums, including financial statements) and marketing materials for these products must not contain any material omissions or misstatements. Once a TIC goes into receivership, the offering documents and marketing materials for such products should be amended to reflect such a material event and to explain the consequences for the contract owner.




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