Registered Insurance Contracts and the SEC

Insurance companies are contending with concurrent and significant regulatory and product-level developments.  The new rules and registration form amendments for variable annuity and variable life insurance contracts have required insurers to devote significant resources to come into compliance with the new disclosure framework.  New product developments and features, particularly for non-variable registered index-linked annuities (RILAs), have also captured the attention--and resources—of insurers, given the market appeal and sales prospects of RILAs and other new products.  Given the significance of these developments for the insurance product industry, it is critical for insurers and practitioners to stay abreast of the SEC staff’s latest implementation guidance for the new variable contract disclosure framework and to ensure that technical areas of the new rules and forms are not overlooked. Similarly, new product and product features have triggered unique disclosure issues of concern to the SEC staff and, by extension, to the industry at large.

In this Briefing, registrants will receive a report on the current implementation stage of the new variable contract disclosure framework and certain recent SEC staff guidance for the industry.  Registrants will also learn about recent RILA product developments, features that have generated market interest, the current SEC staff treatment of these products and emerging disclosure concerns.

W. Thomas Conner, Shareholder at Vedder Price and Nathaniel Segal, Counsel at Vedder Price, will discuss the following topics:

The New Variable Contract Disclosure Framework (20 minutes)

• Background: A revolution in variable contract disclosures
• Current stage of industry implementation
• Practical implementation guidance for the current stage—the latest from the SEC staff

• Adherence to form
• Use of tailored appendices

• Important reminder regarding technical elements—hyperlinking requirements

New Product Developments (15 minutes)

• New variable product features
• Emerging non-variable product developments and features

• Market appeal
• Insurer appeal
• Sales trends

SEC Disclosure Developments and Staff Comments Relating to Product Developments (25 minutes)

• Non-variable products in the current regulatory framework
• Latest developments in the push for a RILA-specific registration form
• Product features and related staff disclosure concerns

• Downside protection
• Indices
• Performance lock
• Guaranteed living benefits

Program Level:  Update

Intended Audience:  In-house counsel, outside attorneys, compliance, insurance, finance and other allied professionals interested in the new variable contract disclosure framework and new product developments

Prerequisites:  None

Advanced Preparation:  None