Source: https://legacy.pli.edu/content/Variable_Annuities_and_Other_Insurance_Investment/_/N-1z140i9Z4l?ID=355988
Timestamp: 2019-03-20 05:30:47
Document Index: 650655153

Matched Legal Cases: ['§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 5', '§ 5', '§ 5', '§ 5', '§ 817', '§ 5', '§ 1', '§ 6', '§ 6', '§ 6', '§ 6', '§ 6', '§ 6', '§ 6', '§ 6', '§ 408', '§ 6', '§ 6', '§ 6', '§ 6', '§ 6', '§ 6', '§ 6', '§ 6', '§ 6', '§ 6', '§ 6', '§ 6', '§ 6', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 8', '§ 8', '§ 8', '§ 8', '§ 8', '§ 8', '§ 8', '§ 8', '§ 8', '§ 8', '§ 8', '§ 8', '§ 8', '§ 8', '§ 8', '§ 8', '§ 8', '§ 9', '§ 9', '§ 9', '§ 9', '§ 9', '§ 9', '§ 9', '§ 9', '§ 9', '§ 9', '§ 9', '§ 9', '§ 9', '§ 9', '§ 9', '§ 9', '§ 9', '§ 9', '§ 9', '§ 9', '§ 9', '§ 9', '§ 9', '§ 9', '§ 9', '§ 9', '§ 9', '§ 9', '§ 9', '§ 9', '§ 9', '§ 10', '§ 10', '§ 10', '§ 10', '§ 10', '§ 10', '§ 10', '§ 10', '§ 10', '§ 10', '§ 11', '§ 11', '§ 11', '§ 11', '§ 11', '§ 11', '§ 11', '§ 11', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 16', '§ 16', '§ 16', '§ 17', '§ 17', '§ 17', '§ 17', '§ 17', '§ 17', '§ 17', '§ 17', '§ 17', '§ 17', '§ 17', '§ 17', '§ 18', '§ 18', '§ 18', '§ 18', '§ 18', '§ 18', '§ 18', '§ 18', '§ 18', '§ 18', '§ 18', '§ 18', '§ 18', '§ 18', '§ 19', '§ 19', '§ 19', '§ 19', '§ 19', '§ 19', '§ 19', '§ 19', '§ 19', '§ 19', '§ 19', '§ 19', '§ 20', '§ 20', '§ 22', '§ 22', '§ 22', '§ 22', '§ 22', '§ 22', '§ 22', '§ 22', '§ 22', '§ 22', '§ 22', '§ 22', '§ 22', '§ 22', '§ 22', '§ 23', '§ 23', '§ 23', '§ 23', '§ 23', '§ 23', '§ 23', '§ 23', '§ 23', '§ 23', '§ 23', '§ 23', '§ 23', '§ 23', '§ 23', '§ 23', '§ 23', '§ 23', '§ 23', '§ 23', '§ 23', '§ 23', '§ 23', '§ 23', '§ 23', '§ 23', '§ 23', '§ 23', '§ 23', '§ 23', '§ 24', '§ 24', '§ 24', '§ 24', '§ 24', '§ 24', '§ 24', '§ 24', '§ 24', '§ 24', '§ 24', '§ 24', '§ 24', '§ 24', '§ 24', '§ 24', '§ 24', '§ 24', '§ 24', '§ 24', '§ 24', '§ 24', '§ 24', '§ 24', '§ 24', '§ 24', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 26', '§ 26', '§ 26', '§ 26', '§ 26', '§ 26', '§ 26', '§ 26', '§ 26', '§ 26', '§ 26', '§ 26', '§ 26', '§ 26', '§ 26', '§ 26', '§ 26', '§ 26', '§ 26', '§ 26', '§ 2550', '§ 2550', '§ 29', '§ 29', '§ 29', '§ 29', '§ 29', '§ 29', '§ 29', '§ 29', '§ 29', '§ 29', '§ 29', '§ 29', '§ 29', '§ 30', '§ 30', '§ 30', '§ 30', '§ 30', '§ 30', '§ 30', '§ 30', '§ 30', '§ 30', '§ 30', '§ 30', '§ 30', '§ 30', '§ 30', '§ 30', '§ 30', '§ 30', '§ 30', '§ 30', '§ 30', '§ 30', '§ 31', '§ 31', '§ 31', '§ 31', '§ 31', '§ 31', '§ 31']

PLI: Treatises - Variable Annuities and Other Insurance Investment Products (Third Edition)
ISBN Number: 9781402430442
Table 1-1 : Variable Annuity Riders1-9
[E] : Unique Investment Features1-11
Figure 1-1 : Contributions and Premium Payments1-18
Chapter 4: Regulation of Variable Insurance Products Under the Investment Company Act of 1940
§ 4:2 : Conceptual Framework Under the Investment Company Act4-4
§ 4:2.1 : Generally4-4
§ 4:2.2 : Separate Accounts Under State and Federal Law4-5
§ 4:2.3 : Variable Contracts Separate Accounts As Investment Companies and UITs4-12
§ 4:2.4 : UITs Under Investment Company Act Section 12(d)1(E)—Contract Holder Voting and Underlying Funds4-14
§ 4:3 : Variable Insurance Contracts and the Investment Company Act4-16
§ 4:3.1 : Classification of Investment Companies4-16
[A] : Open- and Closed-End Funds—Diversified and Non-Diversified Funds4-16
§ 4:3.2 : Registration of the Variable Separate Account and the Variable Contract Offering4-17
[A] : Overview4-17
[B] : Underlying Funds—Form N-1A4-19
[C] : Variable Contracts—Forms N-4 and N-64-22
[D] : Prospectus Updates4-24
§ 4:3.3 : Organizational and Governance Requirements4-25
[A] : Overview4-25
[B] : Initial Funding4-25
[C] : Custody4-26
[D] : Election and Requirements of Board of Directors—Underlying Funds4-27
[E] : Approval of Advisory Fees4-31
[F] : Capital Structure—Senior Securities and Preferential Rights4-34
§ 4:3.4 : Affiliated Transactions/Fiduciary Responsibility4-36
[A] : Overview4-36
[B] : Principal Transactions4-38
[C] : Joint Transactions4-39
[D] : Agency Transactions4-39
[E] : Fiduciary Responsibility4-40
[F] : Reasonableness Standard4-42
[G] : Fund Selection and Substitution4-44
[H] : Insurer Disclosure Liability4-44
§ 4:3.5 : Valuation, Redemptions, Exchanges, and Distribution4-45
[A] : Valuation and the Forward Pricing Rule4-45
[B] : Redemptions4-47
[C] : Exchanges4-48
[D] : Distribution4-50
§ 4:3.6 : Administrative Considerations4-53
[A] : Reporting4-53
[B] : Recordkeeping4-55
[C] : Independent Accountant4-56
[D] : Compliance Programs4-57
§ 4:3.7 : Other Considerations for Variable Insurance Contracts4-58
[A] : Insurance Dedicated Funds—Diversification Requirements of Section 817(h)4-58
[B] : Mixed and Shared Funding4-60
[C] : Summary Prospectus4-62
§ 4:4 : Conclusion4-66
Chapter 5: Tax Treatment of Variable Contracts; and Appendices 5A-5B
§ 5:2 : Tax Definition of “Variable Contract”5-2
§ 5:3 : Contractholder Tax Treatment5-4
§ 5:3.1 : General Contractholder Tax Rules5-4
[A] : Life Insurance Contracts5-4
[B] : Annuity Contracts5-11
[C] : Modified Endowment Contracts5-25
[D] : Long-Term Care Insurance Combination Products5-26
§ 5:3.2 : Special Contractholder Tax Rules Applicable to Variable Contracts5-27
[A] : Diversification Rules (I.R.C. § 817(h))5-28
[A][1] : General Diversification Test5-29
[A][2] : Safe Harbor Test5-29
[A][3] : Alternative Test for Variable Life Contracts5-30
[A][4] : Rules of Application5-30
Figure 5-1 : Unacceptable Structure5-35
Figure 5-2 : Acceptable Structure5-36
[A][5] : Consequences of Nondiversification5-36
[B] : Investor Control5-37
§ 5:4 : Insurance Company Tax Treatment5-41
Appendix 5A : Selected Sections of the Internal Revenue Code and Treasury RegulationsApp. 5A-1
Appendix 5B : Treasury Regulation § 1.817-5App. 5B-1
Chapter 6: ERISA Issues
§ 6:2 : ERISA6-2
§ 6:2.1 : Which Programs Are Covered6-3
§ 6:2.2 : Exclusions from Coverage: Governmental and Church Plans6-7
§ 6:3 : Implications of ERISA Coverage6-8
§ 6:4 : Reporting and Disclosure6-10
§ 6:4.1 : Overview and Schedule A6-10
§ 6:4.2 : Schedule C6-12
§ 6:4.3 : Service Provider Disclosures Under ERISA § 408(b)(2)6-14
§ 6:4.4 : Participant-Level Disclosures6-15
§ 6:5 : Fiduciary Responsibilities6-16
§ 6:5.1 : Overview6-16
§ 6:5.2 : Fiduciary Status and Plan Assets6-16
§ 6:5.3 : The “Plan Assets” Issue6-20
§ 6:6 : Application of the Fiduciary Responsibility Rules to Variable Annuity Contracts6-23
§ 6:7 : Prohibited Transaction Restrictions6-24
§ 6:8 : The Best Interest Contract Exemption6-30
§ 6:9 : Statutory Exemption for Investment Advice6-31
§ 6:9.1 : General Requirements for Computer Models6-32
§ 6:9.2 : Authorization, Disclosure, and Other Requirements6-34
§ 6:9.3 : Relief for Plan Sponsors6-36
§ 6:10 : Conclusion6-36
Chapter 7: Variable Insurance Product Design
§ 7:2 : Federal Regulatory Framework7-4
§ 7:2.1 : Pre-1996 Federal Regulation7-4
§ 7:2.2 : The Reasonableness Standard7-5
§ 7:2.3 : Unused Rulemaking Authority7-6
§ 7:2.4 : Mechanics of the Reasonableness Representation7-7
[A] : Location and Language of Reasonableness Representation7-7
[B] : Supporting Memorandum7-7
§ 7:2.5 : Legislative History7-8
§ 7:2.6 : SEC Staff Guidance7-9
§ 7:2.7 : Factors to Consider in Assessing Reasonableness7-9
[A] : “Services Rendered”7-10
[B] : “Expenses Expected to Be Incurred”7-10
[C] : “Risks Assumed”7-10
[D] : Aggregate Charges Within Range of Industry Practice7-11
[E] : Reasonable Profit7-11
[F] : Innovation7-12
[G] : General Economic Factors and Industry Trends7-12
[H] : Other Regulatory Requirements7-12
[I] : Pre-NSMIA Standards7-13
[J] : Other Considerations7-13
§ 7:2.8 : Underlying Fund Fees and Charges7-13
§ 7:2.9 : Litigation Involving the Reasonableness Standard7-15
§ 7:2.10 : Specific Contracts Fees and Charges7-15
[A] : Mortality and Expense Risk Charges7-16
[B] : Administrative Charges7-16
[C] : Cost of Insurance Charges7-16
[D] : Sales Charges7-17
[E] : DAC Taxes7-17
§ 7:2.11 : Required Liquidity Determination7-18
§ 7:3 : Variable Annuity Product Design7-19
§ 7:3.1 : Overview7-19
§ 7:3.2 : Specific Design Features7-20
[A] : Death Benefits7-20
[B] : Payout Options7-21
[C] : Living Benefits7-22
[D] : Long-Term Care Benefits7-23
[E] : Sales Charges7-23
[F] : Purchases and Redemptions7-23
[G] : Partial Withdrawals7-24
[H] : Nonforfeiture Law7-24
[I] : Free Look Period7-25
[J] : Other State Law Features7-25
§ 7:4 : Variable Life Product Design7-25
§ 7:4.1 : Overview7-25
§ 7:4.2 : Specific Design Features7-27
[A] : Minimum Death Benefits and Grace Periods7-27
[B] : Purchases and Redemptions7-28
[C] : Partial Withdrawals7-29
[D] : Mandatory Policy Provisions7-29
[D][1] : Mandatory Disclosure7-29
[D][2] : Contestability Provisions7-30
[D][3] : Free Look Period7-30
[D][4] : Other Mandatory Provisions7-30
Chapter 8: The Funding Vehicle
§ 8:1 : Regulation Under the Investment Company Act8-2
§ 8:2 : Unique Federal Tax Status of Underlying Mutual Funds8-3
§ 8:3 : Mixed and Shared Funding8-4
§ 8:4 : Rule 12b-1 Plans8-10
§ 8:5 : Participation Agreements8-12
§ 8:5.1 : Purchases and Redemptions8-12
§ 8:5.2 : Prospectuses and Sales Literature8-13
§ 8:5.3 : Mixed and Shared Funding Provisions8-13
§ 8:5.4 : Other Typical Provisions8-14
§ 8:6 : Substitution of Underlying Funds Held by UIT Accounts8-14
§ 8:6.1 : Section 26(c) Applications8-16
§ 8:7 : Mutual Fund Redemption Fees8-20
§ 8:8 : Rule 22e-3: Exemption for Liquidation of Money Market Funds8-22
§ 8:9 : Investment Company Liquidity Risk Management Programs8-25
§ 8:10 : Special Exemptions for Underlying Funds8-26
§ 8:11 : Fund Summary Prospectus8-28
§ 8:12 : State Regulation of Underlying Funds8-30
Chapter 9: SEC Registration; and Appendices 9A-9D
§ 9:2 : Drafting Considerations9-3
§ 9:2.1 : Requirement That Prospectuses Be Written in Plain English9-3
§ 9:2.2 : SEC Staff Insurance Products Industry Comment Letters9-5
§ 9:3 : Mechanics of the Registration Process for New Products9-5
§ 9:3.1 : Filing the Initial Registration Statement9-5
§ 9:3.2 : Staff Review Process9-6
§ 9:3.3 : Going Effective9-6
§ 9:3.4 : Registration Fees9-7
§ 9:4 : Prospectus Delivery and Updating Requirements9-7
§ 9:4.1 : Requirement to Keep Prospectus Current9-8
§ 9:4.2 : Delivery of Updated Prospectus9-8
§ 9:4.3 : Discontinued Contracts9-9
[A] : Generally9-9
[B] : Group Contracts9-10
§ 9:4.4 : Delivery of One Prospectus to Investors Who Share an Address—Householding9-10
§ 9:4.5 : Electronic Delivery of Prospectuses9-12
§ 9:5 : Mechanics of Updating the Prospectus9-12
§ 9:5.1 : Post-Effective Amendments9-13
[A] : Generally9-13
[B] : Text of Rule 4859-15
§ 9:5.2 : Stickers9-20
[A] : Generally9-20
[B] : Text of Rule 4979-21
§ 9:5.3 : The Yearly Update Season9-22
§ 9:6 : Forms N-3 and N-4—Registration Forms for Variable Annuities9-22
§ 9:6.1 : Form N-4 Requirements9-23
§ 9:7 : The Variable Annuity Profile9-35
§ 9:8 : Form N-6—Registration Form for Variable Life Insurance9-36
§ 9:8.1 : Form N-6 Requirements9-37
§ 9:9 : Form N-1A—Registration Form for Underlying Funds9-48
§ 9:9.1 : Delivery of Fund Prospectus9-48
§ 9:10 : Registering a Marketing Value Adjustment Contract9-49
§ 9:10.1 : Generally9-49
§ 9:10.2 : MVA Contracts and Exchange Act Reporting9-49
§ 9:11 : Special Topics9-50
§ 9:11.1 : Marketing Prior to an Effective Registration Statement9-50
[A] : Legal Framework9-50
[A][1] : Permissible Marketing Activity During the Waiting Period9-51
[A][1][a] : Oral Offers9-52
[A][1][b] : Written Offers9-52
§ 9:11.2 : Rule 38a-1 and the Registration Process9-54
Appendix 9A : Form N-4App. 9A-1
Appendix 9B : Form N-6App. 9B-1
Appendix 9C : Industry Comment LettersApp.9C-1
Appendix 9D : Form N-4 Registration Statement Due Diligence GridApp. 9D-1
Chapter 10: State Contract Issues; and Appendix 10A
§ 10:1 : Regulation of Variable Products10-2
§ 10:2 : State Standards for Contracts on a Variable Basis10-2
§ 10:3 : Alternatives to 50-State Filing and Approval10-4
§ 10:3.1 : Certification Filings on a State-by-State Basis10-4
[A] : “Unique Product Features or Design”10-4
[B] : The “Certification Memo”10-5
[C] : Regulatory Acknowledgement10-6
§ 10:3.2 : Interstate Product Regulation Compact10-6
[A] : The Compact10-6
[B] : Variable Compact Products10-8
[C] : IIPRC Procedures10-11
[D] : Compact Benefits10-11
[E] : Noted Compact Product Exceptions10-12
[F] : Compact Product Uniformity10-12
§ 10:4 : Unique Products10-13
§ 10:4.1 : Innovative Variable Products Developed Post-1996 Amendments to the Investment Company Act of 194010-13
[A] : Regulatory Issues Associated with New Product Designs10-14
[B] : Disclosure Requirements Under GLBs10-15
[C] : Reserve Liabilities for Guaranteed Minimum Death Benefit (GMDB) Riders10-16
§ 10:4.2 : Synthetic Guaranteed Investment Contract (GIC) Forms10-18
§ 10:5 : Practical Tips for Policy Form Filing10-19
§ 10:6 : Conclusion10-21
Appendix 10A : Summary of Five-Year Review Comments and PSC Recommendations for Uniform Standards in Phases 2, 3, and 4 of the Five-Year ReviewApp. 10A-1
Chapter 11: Issues Related to Product Administration
§ 11:2 : Variable Annuity Processing Issues11-2
§ 11:2.1 : Two-Day/Five-Day Rule11-2
§ 11:3 : Group Variable Annuities11-4
§ 11:3.1 : Principal Mutual No-Action Letter11-5
§ 11:4 : Variable Life Processing Issues11-6
§ 11:5 : Processing of Premium Payments by the Insurer11-8
§ 11:6 : Allocation of Premiums During the Free Look Period11-9
§ 11:7 : Impact of Underlying Fund Redemption Fees11-11
Chapter 12: Redemption Fee Rule
§ 12:2 : Administrative History12-2
§ 12:2.1 : Proposal12-2
§ 12:2.2 : Adoption12-2
§ 12:2.3 : Amendments12-3
§ 12:2.4 : Compliance Date12-3
§ 12:2.5 : Funds Covered by the Rule12-4
§ 12:3 : Redemption Fee12-5
§ 12:3.1 : Board Determination12-5
§ 12:3.2 : Features of Any Redemption Fee12-6
§ 12:3.3 : Factors for Board Consideration12-9
§ 12:4 : Shareholder Information Agreements12-10
§ 12:5 : Industry Standardization Efforts12-14
§ 12:6 : Implementation of Shareholder Agreement Requirement12-15
§ 12:7 : Variable Insurance Products Funds12-18
§ 12:8 : Conclusion12-21
Chapter 13: Insurer Exchange Programs
§ 13:2 : Text of Relevant Provisions13-3
§ 13:2.1 : Section 11—Offers to Exchange Securities13-3
§ 13:2.2 : Rule 11a-2—Offers of Exchange by Certain Registered Separate Accounts or Others the Terms of Which Do Not Require Prior Commission Approval13-4
§ 13:3 : Section 11 of the Investment Company Act13-7
§ 13:3.1 : Overview13-7
§ 13:3.2 : Coverage of Section 1113-8
[A] : Exchange of Investment Company Security for Another Investment Company Security13-8
[A][1] : Reallocation of Sub-Account Assets13-8
[A][2] : Section 11 Coverage Summary13-9
[B] : Internal Versus External Exchange Offers13-9
[C] : Covered Parties: Separate Account; Principal Underwriters13-10
[D] : Timing of Exchanges13-11
§ 13:3.3 : Exceptions to Section 1113-12
[A] : Treatment of Retail Transactions: “The Retail Exception”13-12
[B] : Rule 11a-213-14
[B][1] : Conditions of Rule 11a-2—Variable Life Insurance Contracts13-15
[B][2] : Conditions of Rule 11a-2—Variable Annuity Contracts13-15
[B][3] : Conditions of Rule 11a-2-Reallocation of Sub-Account Assets13-17
[C] : Exemptive Orders13-17
[C][1] : Hartford Life Insurance Company—New Contingent Deferred Sales Charge13-19
§ 13:4 : Insurance Law Considerations13-20
§ 13:4.1 : State Regulation of Policy Replacements13-21
[A] : NAIC Model Unfair Trade Practices Act13-21
[B] : NAIC Replacement of Life Insurance and Annuities Model Regulation13-22
[B][1] : Exceptions for Certain Exchange Offers13-23
§ 13:4.2 : Relationship to Section 11 Exchange Offers13-23
[A] : Comparison of Section 11 with State Insurance Rules13-23
Chapter 14: SEC Regulation of Product Distribution
§ 14:2 : Broker-Dealer Registration14-3
§ 14:2.1 : Registration of an Insurance Company/Insurance Company Subsidiary—Exchange Act Release No. 838914-3
§ 14:2.2 : Registration of an Insurance Agency14-4
§ 14:3 : Registration As a Transfer Agent14-6
§ 14:4 : Recordkeeping Requirements14-8
§ 14:4.1 : Required Records14-8
§ 14:4.2 : Preservation of Records14-16
[A] : Time Period14-16
[B] : Location14-16
[C] : Requirements to Maintain Records at an Office14-16
§ 14:4.3 : Recordkeeping—Insurance Company Subsidiary Registered As a Broker-Dealer14-18
§ 14:5 : Financial Reporting14-18
§ 14:5.1 : Financial Statements14-18
§ 14:5.2 : FOCUS Reports14-19
§ 14:5.3 : Form Custody14-19
§ 14:6 : Net Capital Requirements14-19
§ 14:6.1 : Required Level of Net Capital14-19
§ 14:6.2 : Restrictions on Withdrawals of Equity Capital14-20
§ 14:7 : Customer Protection Rule14-20
§ 14:8 : SIPC Membership14-21
§ 14:9 : Payment of Commissions14-22
§ 14:9.1 : Payment of Commissions to Captive Agents14-22
§ 14:9.2 : Payment of Commissions to an Insurance Agency14-22
§ 14:10 : Broker-Dealer Standard of Care—Proposed Regulation Best Interest14-23
§ 14:10.1 : Background—Compensation Related Conflicts14-23
§ 14:10.2 : SEC Regulation Best Interests Proposal14-24
§ 14:11 : Effecting Transactions14-25
§ 14:11.1 : Insurance Company’s Role in Effecting Variable Product Transactions14-25
§ 14:11.2 : Settlement of Transactions14-26
§ 14:11.3 : Confirmation Requirements14-26
[A] : Immediate Confirmation Requirements: Rule 10b-10(a)14-27
[B] : Quarterly Confirmation Requirements: Rule 10b-10(b)14-28
[C] : SEC Exemptive Authority14-29
[D] : Special Considerations Applicable to Variable Products14-29
§ 14:12 : Duty to Supervise14-30
§ 14:13 : SEC Exam and Enforcement Authority14-31
Chapter 16: FINRA Suitability, Supervision, and Sales Practices
§ 16:1 : Background16-2
§ 16:2.1 : General FINRA Rules Applying to All Securities16-3
[A][2] : Discussion of FINRA’s General Suitability Rule16-6
[A][2][a] : Old NASD Conduct Rule 231016-6
[B][2][b][i] : Recommendations to Customers16-8
[B][2][b][ii] : What Are Investment Strategies?16-9
[B][2][b][iii] : Reasonable-Basis; Customer-Specific; Quantitative Suitability16-10
[B][2][b][iv] : Customer’s Investment Profile16-11
[B][2][b][v] : Institutional Investors16-11
[A][3][a] : Duty Runs to FINRA Members16-14
[A][3][b] : Duty Runs to Transactions Involving a “Recommendation”16-14
[B] : Other Relevant FINRA General Rules16-16
[B][1] : Supervisory Systems16-16
[A] : Reminder That Sales of Variable Contracts Are Subject to FINRA Suitability Requirements: 199616-17
[C] : Sale of Variable Life Insurance: 200016-18
[D] : Replacement of Annuities’ Impact on Contract Value and Death Benefit—Regulatory & Compliance Alert: 2002; Notice to Members 05-5016-19
[G][1] : Text of FINRA Rule 233016-21
[G][3] : Recommendation Requirements16-27
[G][4] : Principal Review and Approval16-28
§ 16:2.3 : FINRA Enforcement and Examinations16-30
[A] : Background16-30
[B] : “L” Shares16-32
[C] : Guarantees16-32
[D] : Exchanges16-33
[E] : New York Regulation 6016-33
[F] : Supervision of Redemption16-34
[G] : Broker-Dealer Access to Variable Annuity Transaction Data16-34
Chapter 17: State Insurance Regulation Applying to the Distribution of Variable Insurance Products
§ 17:2 : State Insurance Licensing Requirements for Distributors of Variable Insurance Products17-2
§ 17:2.1 : State Regulatory Framework17-2
§ 17:2.2 : New NAIC Model Licensing Act Approach17-3
§ 17:3 : State Insurance Suitability17-4
§ 17:3.1 : State Regulatory Framework17-4
§ 17:3.2 : NAIC Model Variable Life Insurance Regulation17-5
§ 17:3.3 : NAIC Suitability in Annuity Transactions Model Regulation17-5
Table 17-1 : Model Regulation Developments17-5
[A] : Customer Information17-6
[B] : Supervisory Program17-6
[C] : Records17-6
§ 17:3.4 : 2010 Amendments17-6
§ 17:3.5 : Insurer Supervisory Programs17-7
§ 17:3.6 : State Adoption of the Model Annuity Suitability Regulation17-8
§ 17:3.7 : NAIC Annuity Suitability (A) Working Group’s Efforts to Revise the Model Annuity Suitability Regulation17-8
§ 17:3.8 : New York Insurance Regulation 187: Suitability and Best Interests in Life Insurance and Annuity Transactions17-10
[A] : Best Interest Duties and Obligations for Insurers17-11
[B] : Best Interest Duties and Obligations for Producers17-12
Chapter 18: Replacement of Insurance Products
§ 18:2 : Background18-5
§ 18:2.1 : Definition of a Replacement18-5
§ 18:2.2 : Early Regulation of Replacements18-7
[A] : State Regulation18-7
[B] : Federal Regulation18-9
§ 18:2.3 : Bonus Annuities18-11
§ 18:2.4 : Recent Developments18-12
§ 18:3 : Federal Regulation of Replacements18-17
§ 18:3.1 : Suitability18-17
§ 18:3.2 : Duty of Fair Dealing18-22
§ 18:3.3 : Disclosure18-23
§ 18:3.4 : Supervision18-25
§ 18:4 : State Regulation18-29
§ 18:4.1 : State Replacement Regulation18-29
[A] : NAIC Model Regulations18-29
[A][1] : Life Insurance and Annuities Replacement Model Regulation18-30
[A][1][a] : Scope and Application18-32
[A][1][b] : Duties of Producers18-33
[A][1][c] : Duties of Insurers That Use Producers18-34
[A][1][d] : Duties of Replacing Insurers That Use Producers18-36
[A][1][e] : Duties of the Existing Insurer18-37
[A][1][f] : Duties of Insurers with Respect to Direct Response Solicitations18-38
[A][1][g] : Violations and Penalties18-38
[B] : Suitability in Annuity Transactions Model Regulation18-40
[B][1] : Scope and Application18-41
[B][2] : Suitability18-42
[B][3] : Supervision18-44
[B][4] : Insurance Producer Training18-45
[B][5] : Compliance; Mitigation; Penalties18-46
[B][6] : State Reaction to the Suitability in Annuity Transactions Model18-46
[C] : Model Unfair Trade Practices Act18-47
§ 18:4.2 : State Statutes and Regulations18-49
[A] : New York State Insurance Department Regulation 6018-49
[A][1] : Scope and Application18-51
[A][2] : Duties of Producers18-53
[A][3] : Duties of All Insurers18-54
[A][4] : Duties of Replacing Insurers18-55
[A][5] : Existing Insurers18-56
[A][6] : Prohibited Acts18-57
[A][7] : Market Conduct Exams and Disciplinary Action18-58
[B] : California18-61
[C] : Florida18-65
[D] : Illinois18-67
[E] : Pennsylvania18-68
§ 18:4.3 : State Securities Laws18-69
[A][3] : FINRA Guidance: Back-Tested Index Performance/Institutional Communication19-41
[B] : Variable Life Performance19-41
§ 19:5.2 : Variable Annuity Tax-Deferral Illustrations19-44
§ 19:5.3 : Investment Analysis Tools19-45
§ 19:5.5 : Customized Hypothetical Investment Planning Illustrations19-46
§ 19:5.6 : Interactive Computer Software Programs That Compare Variable Annuities to Mutual Funds19-46
§ 19:5.7 : Foreign Language Marketing Material19-47
§ 19:5.8 : Bonus Annuity Products19-48
§ 19:5.9 : Variable Annuity Illustrations19-48
[B] : FINRA’s Current Position19-51
§ 19:5.10 : Dollar Cost Averaging Programs19-52
§ 19:6 : Recent Developments Related to FINRA’s Variable Product Advertising Rules19-54
§ 19:6.1 : Variable Product Advertising Rule Filing19-54
[A] : Regulatory Notice 08-3919-54
[B] : Current Status19-55
§ 19:6.2 : FINRA Retrospective Rule Review19-55
§ 19:6.3 : Customized Hypothetical Investment Planning Illustrations19-55
[B][1] : The Basic Illustration20-2
§ 20:3.2 : Charges20-5
§ 20:3.3 : Investment Returns20-7
[A] : Prospectus Illustrations20-7
Chapter 22: Separate Account Compliance Programs
§ 22:1 : Background22-1
§ 22:1.1 : Text of Rule 38a-122-2
§ 22:1.2 : Coverage22-5
§ 22:2 : Adoption and Implementation of Written Policies and Procedures22-5
§ 22:2.1 : Required Scope of Written Policies and Procedures22-6
§ 22:2.2 : Oversight of Service Providers’ Policies and Procedures22-7
§ 22:3 : Approval of Written Policies and Procedures22-8
§ 22:4 : Annual Review22-9
§ 22:5 : Chief Compliance Officer22-9
§ 22:6 : Record Keeping22-10
§ 22:7 : Special Issues Related to Variable Products22-11
§ 22:7.1 : Satisfying the Oversight Responsibility Provisions22-11
§ 22:7.2 : Determining Who Is a Service Provider22-11
§ 22:7.3 : Living with a Separate Account Compliance Program22-12
§ 22:8 : SEC Enforcement Activity Related to Compliance Program Deficiencies22-13
Chapter 23: SEC Insurance Product Separate Account Exams; and Appendix 23A
§ 23:2 : History of the Variable Products Inspection Program23-3
§ 23:2.1 : Background23-3
§ 23:2.2 : Office of Compliance Inspections and Examinations23-4
§ 23:2.3 : SEC and FINRA Joint Variable Product Examinations23-5
§ 23:2.4 : SEC, FINRA, and NASAA Free Lunch Seminar Sweep Examinations23-9
§ 23:3 : OCIE Variable Products Inspection Focus23-10
§ Diagram 23-1 : Broader OCIE Examination Focus23-13
§ 23:4 : The Mechanics of Variable Products Inspections23-13
§ 23:4.1 : Inspection Site23-14
[A] : Home Office Versus Off-Site23-14
[B] : Third-Party Service Provider23-15
[C] : Sales Office23-15
§ 23:4.2 : Frequency of Variable Product Inspections23-15
§ 23:4.3 : Inspection Targets23-16
§ 23:4.4 : Notice Period23-17
§ 23:4.5 : Requests for Documentation23-17
[A] : Phase I Request for Information for Variable Product Sponsors23-18
[A][1] : Customer Transactions23-18
[A][2] : Replacement Transactions23-19
[A][3] : Financed Transactions23-20
[B] : Phase II Request for Information for Variable Product Sponsors23-20
[B][1] : Legal, Back-Office Administration, and Customer Transaction Files23-21
[B][2] : Accounting Documents23-22
[B][3] : Market Conduct and Sales Practices23-22
[B][4] : Rule 38a-1 Program Documentation23-24
[C] : Request for Information for Broker-Dealers That Solicit Variable Products23-24
[C][1] : Financial and Corporate Books and Records23-24
[C][2] : Sales Practice Information Request23-25
[C][3] : Variable Annuity Information Request23-26
§ 23:4.6 : Duration of Inspection23-27
§ 23:4.7 : Inspection Follow-Up23-27
[A] : Evaluation and Reporting Components23-27
[B] : Deficiency Letter and Response to Inspection Findings23-28
§ 23:5 : An In-Depth Look at Variable Product Back-Office (Administration) Inspections23-28
§ 23:5.1 : Opening Interview/Outline of Review Points23-28
§ 23:5.2 : Compliance Policies and Procedures and Designated CCO Manuals23-34
§ 23:5.3 : Transaction Processing and “As of” Pricing23-34
§ 23:5.4 : NAV and AUV Computations23-36
§ 23:5.5 : Walk-Through23-37
§ 23:6 : An In-Depth Look at Variable Product Market Conduct and Sales Practice Inspections23-39
§ 23:6.1 : General23-39
§ 23:6.2 : Supervisory and Market Conduct Compliance Procedures Manual23-40
§ 23:6.3 : Supervisory and Compliance Systems23-40
§ 23:6.4 : Sales Office Activity23-41
§ 23:6.5 : Sales Office Component23-41
§ 23:6.6 : Opening Interview/Outline of Review Points23-42
§ 23:6.7 : Request for Documentation23-46
§ 23:7 : Frequently Cited Exam Deficiencies23-47
§ 23:8 : Conclusion23-47
Appendix 23A : Examination Request ListApp. 23A-1
Chapter 24: Private Placement Variable Life Insurance
§ 24:1.1 : Structure24-4
§ 24:1.2 : Insurance Regulation24-4
§ 24:1.3 : Tax Treatment24-5
§ 24:1.4 : Fees and Charges24-5
§ 24:1.5 : Distribution24-6
§ 24:2 : Regulatory Treatment of PPVLI Products24-6
§ 24:3 : The Securities Act of 193324-8
§ 24:3.1 : Exemptions24-8
§ 24:3.2 : Rule 506 Offerings24-9
[A] : Accredited Investors24-9
[A][1] : Natural Persons24-10
[A][2] : Corporations, Limited Liability Companies, Partnerships, and Business Trusts24-13
[A][3] : Common Law and Similar Trusts24-14
[A][4] : Employee Benefit Plans—Rule 501(a)(1)24-15
[A][5] : “Formed for the Specific Purpose”24-16
[B] : Regulation D—Conditions24-18
[B][1] : Integration24-18
[B][2] : Information24-19
[B][2][a] : Offerings to Accredited Investors24-20
[B][2][b] : Offerings to Non-Accredited Investors24-20
[B][2][c] : Offerings to Both Accredited and Non-Accredited Investors24-21
[B][2][d] : Disclosures Generally24-22
[B][3] : Manner of Offering24-22
[B][4] : Resale Restrictions24-25
[B][5] : Notice of Offering24-25
[C] : Rule 506(b)—Specific Terms24-26
[D] : Rule 506(c)—Reasonable Verification24-28
[E] : Rule 506(d)—Bad Actor Disqualification24-29
§ 24:3.3 : State Securities Law Registration and Filing24-32
§ 24:4 : Investment Company Act of 194024-33
§ 24:4.1 : Exclusions Under the Investment Company Act24-33
[A] : Section 3(c)(1) Separate Accounts24-33
[A][1] : “Look-Through” Provisions24-35
[A][2] : Anti-Circumvention Principles24-38
[A][3] : Integration24-40
[A][4] : Estates and Donees24-42
[A][5] : General Considerations24-42
[B] : Section 3(c)(7) Separate Accounts24-42
[B][1] : Qualified Purchasers24-43
[B][1][a] : Natural Persons24-45
[B][1][b] : Corporations, Partnerships, and Other Entities24-45
[B][1][c] : Common Law and Similar Trusts24-47
[B][1][d] : Pension Plans and IRAs24-48
[B][2] : “Formed for the Specific Purpose”24-49
[B][3] : Estates and Donees24-49
[B][4] : Anti-Circumvention Principles24-50
[B][5] : Integration24-50
[B][6] : Investments24-50
[C] : Section 12(d)(1)—Anti-Pyramiding24-51
§ 24:4.2 : Fees and Expenses24-51
§ 24:5 : Securities Exchange Act of 193424-51
§ 24:5.1 : Section 12(g) Registration24-51
§ 24:5.2 : Antifraud Provisions24-52
§ 24:6 : Commodity Exchange Act24-52
§ 24:7 : Tax Considerations24-53
§ 24:7.1 : Diversification24-53
§ 24:7.2 : Investor Control24-54
§ 24:8 : Insurance Agencies and Other Distributors24-55
§ 24:8.1 : Broker-Dealer Registration24-55
§ 24:8.2 : FINRA Regulation24-56
§ 24:8.3 : Investment Adviser Registration24-57
§ 24:8.4 : Commodity Trading Advisor Regulation24-58
§ 24:9 : Funding Vehicles24-59
Chapter 25: Asset Allocation Programs and Funds of Funds in Variable Insurance Products
§ 25:1 : Introduction25-2
§ 25:2 : Asset Allocation Programs25-2
§ 25:2.1 : Background25-2
§ 25:2.2 : SEC Staff Guidance on Asset Allocation Programs in Variable Products25-4
[A] : Generally25-4
[B] : Investment Company Act Issues25-5
[C] : Investment Advisers Act Issues25-6
§ 25:2.3 : Implementation Issues Under the SEC’s Guidance25-7
[A] : Selection of Investment Adviser for Program25-7
[B] : Role of Broker-Dealer25-9
[C] : Updates to Static Asset Allocation Models25-10
[D] : Notice Required by Opt-Out Programs25-10
§ 25:2.4 : ERISA Concerns Regarding Selection of Mutual Funds in Asset Allocation Programs25-11
§ 25:3 : Funds of Funds25-16
§ 25:3.1 : Generally25-16
§ 25:3.2 : Statutory Restrictions and Exceptions Under Section 12 of the Investment Company Act25-17
§ 25:3.3 : SEC Exemptive Relief for Funds of Funds in Variable Products25-19
[A] : Generally25-19
[B] : Compliance with Section 17(e)25-22
[C] : Mixed and Shared Funding Issues25-25
§ 25:3.4 : Funds of Funds Exemptive Rules25-26
[A] : Generally25-26
[B] : Rule 12d1-1 (Money Market Fund Cash Sweep Arrangements)25-27
[C] : Rule 12d1-2 (Expanded Investment in Other Types of Issuers for Affiliated Funds of Funds)25-28
§ 25:3.5 : Disclosure Requirements for Funds of Funds in Variable Products25-29
§ 25:3.6 : Proposed Rules Regarding Funds Investing in ETFs25-30
§ 25:3.7 : Use of Target-Date Funds in Variable Annuities25-31
Chapter 26: Variable Annuities in Retirement Plans; and Appendices 26A-26D
§ 26:2 : Regulatory Environment26-3
§ 26:2.1 : Internal Revenue Code26-3
§ 26:2.2 : ERISA26-4
§ 26:2.3 : Federal Securities Laws26-5
§ 26:2.4 : State Laws26-6
§ 26:3 : Overview of Retirement Plans26-7
§ 26:3.1 : Defined Contribution Plans Compared to Defined Benefit Plans26-7
§ 26:3.2 : Trust Requirement26-8
§ 26:4 : Defined Contribution Plan Types26-8
§ 26:4.1 : Qualified Plans Under Code Section 401(a) (Including 401(k) Plans)26-9
§ 26:4.2 : Section 403(a) Annuity Plans26-10
§ 26:4.3 : Section 403(b) Plans26-10
§ 26:4.4 : Section 457(b) Plans26-12
§ 26:4.5 : Variable Annuity Contract Designs for Retirement Plans26-13
[A] : Deferred Annuities26-13
[B] : Immediate Annuities26-14
[C] : Individual and Group Annuity Contracts26-14
[D] : Allocated and Unallocated Group Annuity Contracts26-16
[E] : Forms of Distributions from Retirement Plans26-17
[F] : Spousal Rights Requirements26-18
[G] : Specific Defined Contribution Plan Provisions26-19
[G][1] : Required Distribution Requirements26-20
[G][2] : Contribution Limitations26-20
[G][3] : Right to a Direct Rollover26-20
[G][4] : Distribution Restrictions26-20
[G][5] : Distributions Without Consent26-22
[G][6] : Hardship Distributions26-22
[G][7] : Loans26-23
[G][8] : No Assignment26-24
[G][9] : Vesting26-24
[H] : Specific Requirements for 403(b) Plans26-24
[H][1] : Nonforfeitability26-24
[H][2] : Limitations on Elective Deferrals26-25
[H][3] : Nontransferability26-25
[H][4] : Rollover Distributions26-25
[H][5] : Limitation on Incidental Benefits26-25
§ 26:5 : Enrollment Processes26-25
§ 26:6 : Other Issues Relating to the Use of Annuities in Retirement Plans26-27
§ 26:6.1 : Selecting an Annuity Provider26-27
§ 26:6.2 : Qualified Longevity Annuity Contracts26-29
§ 26:6.3 : Participant Disclosures Related to Variable Annuity Contracts26-31
§ 26:6.4 : Use of Deferred Annuities in Target Date Funds26-37
Appendix 26A : 29 C.F.R. § 2550.404a-5—Fiduciary Requirements for Disclosure in Participant-Directed Individual Account PlansApp. 26A-1
Appendix 26B : 29 C.F.R. § 2550.404c-1—ERISA Section 404(c) PlansApp. 26B-1
Appendix 26C : SEC No-Action Letter (October 26, 2011)App. 26C-1
Appendix 26D : SEC No-Action Letter (February 18, 2015)App. 26D-1
Chapter 29: Registered Index-Linked Insurance Contracts
§ 29:1 : Introduction29-2
§ 29:2 : Design of Registered Index-Linked Insurance Contracts29-3
§ 29:2.1 : A Glance at the Investment Advisers Act Regulatory Framework29-3
§ 29:2.2 : Key Elements29-4
Table 29-1 : Calculation of Investor Rate of Return29-7
§ 29:3 : Registering an Index-Linked Annuity Contract: Process, Decision Points, and Challenges29-8
§ 29:3.1 : Background29-8
§ 29:3.2 : Forms S-1 and S-329-10
[A] : Filing on Form S-129-10
[A][1] : Rule 12h-729-10
[A][2] : Form S-1 Content29-11
[B] : Filing on Form S-329-12
[B][1] : Eligibility Requirements29-12
[B][2] : Exchange Act Reporting29-14
[B][3] : Ability to Reduce or Omit Certain Disclosure29-14
[C] : Considerations Common to Both Form S-1 and Form S-329-16
[C][1] : GAAP29-16
[C][2] : Incorporation by Reference and Aging-Out of Financial Statements29-17
[C][3] : Registration Fees29-18
[C][4] : General Filing Requirements29-18
Table 29-2 : Form S-1 and Form S-3—Key Similarities and Differences29-20
§ 29:4 : Potential Regulatory Relief from Certain Ill-Fitted Requirements for State-Regulated Annuity Contracts Registered on Forms S-1 and S-329-21
§ 29:5 : Distributing Registered Index-Linked Contracts29-25
§ 29:5.1 : Registration and Authority to Sell29-25
[A] : Series 6 Versus Series 729-25
[B] : Application of Corporate Financing Rule29-25
[C] : Authority to Offer a New Line of Business29-26
§ 29:5.2 : Suitability and Supervisory Issues29-26
[A] : Complex Product Guidance29-26
[B] : Application of FINRA’s Suitability Rules29-26
§ 29:5.3 : Marketing Material29-27
[A] : Approval, Review and Recordkeeping29-27
[B] : Filing with FINRA29-27
[C] : Hypothetical Illustrations or Examples29-28
§ 29:6 : Conclusion29-29
Chapter 30: Introduction to Life Settlements; and Appendix 30A
§ 30:1 : Background30-3
§ 30:1.1 : Life Insurance30-3
§ 30:1.2 : Life Insurance Policies as Transferrable Property30-4
§ 30:1.3 : Life Settlements30-5
§ 30:2 : The Life Settlement Marketplace30-8
§ 30:2.1 : Generally30-8
§ 30:2.2 : Characteristics of Life Insurance Policies30-10
[A] : The Insurance Policy—Generally30-10
[B] : Types of Insurance Products30-11
[B][1] : Term Insurance30-11
[B][2] : Permanent Life Insurance30-11
[B][2][a] : Whole Life Insurance30-12
[B][2][b] : Universal Life Insurance (UL)30-12
[B][2][c] : Limited Pay Life Insurance30-13
[C] : Parties to the Insurance Contract/Policy30-13
[D] : Special Policy Provisions30-15
[E] : Contestability30-15
[F] : Underwriting by the Insurance Company30-17
[G] : Maturity—Collection of the Death Benefit30-19
§ 30:3 : The Players in the Life Settlement Marketplace30-20
§ 30:3.1 : Insured/Policy Owner30-20
[A] : Generally30-20
[B] : Issues and Risks30-21
[B][1] : Possible Alternatives30-21
[B][2] : Insured’s Identity and Medical Records30-21
[B][3] : Insured Contacts and Future Disclosure Obligations30-21
[B][4] : Need For Insurance Coverage30-22
[B][5] : Policy Replacement Issues30-22
[B][6] : Public Assistance30-22
[B][7] : Taxation30-22
[B][8] : Creditors and Bankruptcy30-22
§ 30:3.2 : Financial Advisors/Producers/Brokers30-22
§ 30:3.3 : Life Settlement Providers30-23
§ 30:3.4 : Investors or “Funders”30-24
[A] : Generally30-24
[B] : Issues and Risks30-25
[B][1] : Suitability for Purchase30-25
[B][2] : Lack of Liquidity30-25
[B][3] : Pricing Risks and Valuation Issues30-25
[B][4] : Time Risks30-25
[B][5] : Life Expectancy Reports30-26
[B][6] : Premium Optimization30-26
[B][7] : Mistakes in Servicing Policies30-26
[B][8] : Missing Insureds30-26
[B][9] : Possible Insolvency of Insurance Companies30-26
[B][10] : Life Insurance Companies’ Aversion to Investment Transactions Involving Life Settlements30-27
[B][11] : Impact of Increase in Cost on Life Insurance Policies30-27
[B][12] : Insurance Companies’ Contestability of Life Insurance Policies30-27
[B][13] : Termination of Policy before Death of Insured30-28
[B][14] : Sale Contested By Family Members30-28
[B][15] : Stranger Originated Life Insurance Policies30-28
[B][16] : Refusal to Pay Benefits on Certain Policies30-28
[B][17] : Certain Fraudulent Activities30-28
[B][18] : Life Settlements Regulation30-29
§ 30:3.5 : Life Expectancy Providers30-29
§ 30:4 : Life Settlement Transaction30-30
Figure 30-1 : Individual Policy Acquisition Flow30-30
§ 30:5 : Regulatory Treatment30-30
§ 30:5.1 : Generally30-30
§ 30:5.2 : State Insurance Laws30-34
§ 30:5.3 : Securities Laws30-34
[A] : Federal Level30-34
[B] : State Level30-39
§ 30:6 : Litigation Involving Life Settlements30-41
§ 30:6.1 : Overview30-41
§ 30:6.2 : Significant Cases30-43
[A] : Grigsby v. Russell30-43
[B] : New England Mutual Life Insurance Co. v. Caruso30-43
[C] : Kramer v. Phoenix Life Insurance Co.30-44
[D] : PHL Variable Insurance Co. v. Price Dawe 2006 Insurance Trust30-45
[E] : Settlement Funding L.L.C. v. AXA Equitable Insurance Co.30-46
[F] : Berkshire Settlements, Inc. v. Ashkenazi30-48
[G] : The Lincoln Life and Annuity Company of New York v. Berck30-49
[H] : Ohio National Life Assurance Corporation v. Davis30-52
[I] : Pruco Life Insurance Co. v. Brasner30-52
[J] : Sciarretta v. The Lincoln National Life Insurance Company30-53
[K] : PHL Variable Insurance Co. v. The Faye Keith Jolly Irrevocable Life Insurance Trust30-54
[L] : Principal Life Insurance Co. v. Lawrence Rucker 2007 Insurance Trust30-55
[M] : Penn Mutual Life Insurance Co. v. Greatbanc Trust Co.30-56
[N] : PHL Variable Insurance Co. v. Virginia L. Lankow Life Insurance Trust30-57
§ 30:7 : Tax Issues30-57
Appendix 30A : Policy Closing ChecklistApp. 30A-1
Chapter 31: Insurance-Linked Securities
§ 31:2 : General Types of ILS31-3
§ 31:2.1 : ILS Based on Insurable Events31-3
[A] : Reinsurance31-3
[B] : Components/Issues31-4
[B][1] : Threshold Regulatory Issues31-4
[B][1][a] : Statutory Definitions of Insurance31-4
[B][1][b] : Regulatory Relief31-5
[B][1][c] : Regulatory Risk and Offering Restrictions31-7
[B][2] : Components and Structuring31-10
[B][2][a] : The SPV31-10
[B][2][b] : The Indenture31-11
[B][2][c] : Allocation of Loss Provisions31-12
[B][2][d] : Reinsurance or other Risk-Transfer Agreement31-13
[B][2][e] : Offering Materials31-15
[B][2][f] : Service Providers31-17
[B][2][g] : Other Lines31-18
§ 31:2.2 : ILS Based on Redundant Reserves31-18
[A] : Closed Block Securitization31-18
[B] : Redundant Reserve Securitizations More Broadly31-20
§ 31:3 : NAIC and State Developments31-22
§ 31:3.1 : Protected Cell Company Model Act31-22
[A] : Securitization31-23
[B] : Protected Cell31-23
[C] : Legal Identity31-24
[D] : Directors’ Duty to Maintain Separateness31-25
[E] : Bankruptcy Remoteness Issues31-25
§ 31:3.2 : Special Purpose Reinsurance Vehicle Act31-26
[A] : SPRV Insurance Securitization31-26
[B] : Forming an SPRV31-27
[C] : Limitations on Use31-27
§ 31:3.3 : Other State Laws31-28
[A] : Captive Insurance Generally31-28
[B] : The Rise of Special Purpose Captives31-29
[C] : Regulatory Activity31-30