All pool transactions are at contract value. Defined contribution participants have liquidity at book value as in all defined contribution stable value funds. Contract holders in bank collective trust pools are generally offered book value liquidity with notice of up to one year. Mutual fund contract holders have liquidity at book subject to a fixed penalty. The funds are supported by insurance companies based on the volume of the particular type of business that they have issued in the state.
Coverage varies by state.
The purpose is to protect the separate account investor from the credit risk of the issuer. LIFO Return to top A stable value fund withdrawal method in which participant withdrawals for benefits and investment transfers are taken from the most recent contract until its fund balance is exhausted, then the next most recent, etc. Contributions to a LIFO contract are made net of participant withdrawals. Usually the source is a maturing contract, but it may be an employer contribution or other amount known in advance. NAIC Return to top National Association of Insurance Commissioners, the organization that establishes general standards for state insurance regulations.