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


(c) If an account is not exempted from the definition of a general asset or excluded from the distribution scheme, the receivership act will typically provide that it is subject to distribution to cre



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(c) If an account is not exempted from the definition of a general asset or excluded from the distribution scheme, the receivership act will typically provide that it is subject to distribution to creditors.

(d) An annuity contract or life policy that imposes certain significant investment risks on the owners, such as a “market value adjustment,” or an “index-linked variable annuity,” might be required to be registered under the 1933 Act regardless of whether it is funded by a separate account registered under the 1940 Act (“Other SEC Registered Products”):


  • Other SEC Registered Products such as registered modified guaranteed annuities and index-linked variable annuities may be funded by a separate account established in accordance with one of the requirements described in B.2.(a), above.

  • Whether or not funded by a separate account, the receiver could face compliance issues under the 1933 Act with respect to such Other SEC Registered Products.

  • Section 989J of the Dodd-Frank Act2 contains a provision that limits the ability of the SEC to classify indexed annuities and other insurance products as securities. This provision known as the Harkin Amendment.



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