SEC's new rules for VL registrations will reform prospectuses. (Regulation).(U.S. Securities and Exchange Commission's new rules for variable life insurance)(Government Activity)(Brief Article)

National Underwriter Life & Health-Financial Services Edition, April, 2002 by Puretz, Jeffrey S.

The Securities and Exchange Commission's new rules for prospectuses that offer variable life insurance policies, which were adopted in April, are part of a new type of registration statement.

Insurers will be required to use this statement-- Form N-6--to register VL policies as securities. Form N-6 must be used for new contracts or updates to VL insurance prospectuses filed with the SEC on or after Dec. 1, 2002.

This is the first time the SEC has adopted a registration statement format specifically tailored to VL insurance.

Prior to this, insurers had to use a general form with antiquated requirements that did not provide any guidance on disclosure for VL policies. That left the industry and the SEC staff to grope through disclosure...

Read the rest of this article with a Free Trial at HighBeam Research.

Premium Content Partnership | HighBeam Research provides an in-depth online archive library of reference works.