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SEC wants updated reporting for life insurance contracts

Joe Mont | November 5, 2018

Firms offering variable annuities and variable life insurance contracts could face new disclosure requirements with rule changes proposed by the Securities and Exchange Commission.

The proposal “is intended to help investors better understand these contracts' features, fees, and risks, and to more easily find the information that they need to make an informed investment decision,” the Commission says.

“Providing key summary information about variable annuities and variable life insurance contracts to investors is particularly important in light of the long‑term nature of these contracts and their potential complexity,” Chairman Jay Clayton said in a statement.

The proposal would, for the first time, permit these insurance contracts to use a summary prospectus to provide disclosures to investors. “This document would be a concise, reader‑friendly summary of key facts about the contract,” the SEC says. More detailed information about the contract would be...

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