SEC would set registration forms for certain insurance contracts

The Securities and Exchange Commission would propose and finalize registration forms that issuers may use for covered insurance contracts. Covered contracts include registered index-linked life insurance, contingent deferred annuities, and other registered non-variable insurance contracts issued by insurance companies. The forms would have to give purchasers information needed to make informed decisions. The SEC would have to test investors for contingent deferred annuities and use the results when designing those forms. The SEC would limit requested insurance-company disclosures to specified existing form requirements and could not block an available exemption for qualifying issuers. The section would not override state or territory laws, regulations, rules, or orders. The SEC would propose the rules within 12 months after enactment and finalize them within 30 months after enactment.

If the SEC has not finalized the required rules by the deadline, issuers may register registered index-linked life insurance and contingent deferred annuities using specified existing forms. This backup option covers registered index-linked life insurance and contingent deferred annuities, as defined for contracts registered or seeking registration with the SEC. Registrations would have to follow the applicable requirements for the existing forms. The option would end when the SEC finalizes the required new rules. The backup option would begin at the end of the 30-month period after enactment if the SEC has not finalized the rules, and would end when those rules are finalized.