Before revision:  Finally, we also discuss the regulatory effect of a portfolio insurance (PI) , and analyze different choices for the parameters of the participating contract numerically .
After revision:  Finally, we also discuss the regulatory effect of a portfolio insurance (PI) -type regulation. Furthermore, a stricter regulation (a smaller allowed default probability in the VaR problem or a higher minimum guarantee level in the PI problem) enhances the benefit of the policyholder but deteriorates that of the insurer. For both types of regulation, the gains in terms of expected utility are greater for higher participation rates, while being smaller for higher bonus rates. We also extend our analysis to frameworks where dividend and premature death benefit payments are made at an intermediate time date .