Corrections to SEC final rules and form amendments to revise disclosure requirements for variable annuities and variable life insurance contracts ("variable contracts") were published in the Federal Register. The corrections are technical amendments to certain instructions of the final rule. The final rule and these technical corrections went into effect on July 1, 2020.
As previously covered, the final rule will allow an issuer to satisfy the prospectus delivery requirement for variable contracts by delivering a summary prospectus using a "layered disclosure approach" (i.e., a reader-friendly overview of critical facts, with information about how to find a more in-depth discussion online or in paper format).
Primary Sources
- SEC Final Rule: Updated Disclosure Requirements and Summary Prospectus for Variable Annuity and Variable Life Insurance Contracts
- SEC Fact Sheet: Updated Disclosure Requirements and Summary Prospectus for Variable Annuity and Variable Life Insurance Contracts
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