On October 30, the SEC voted to propose modernized disclosures
for variable annuities and variable life insurance policies
("variable insurance products" or "contracts"),
including the use of an optional summary prospectus.
Perhaps the most striking aspect of the proposal is the
"access equals delivery"
approach to prospectus delivery for the mutual funds that serve as
the underlying investments of these products ("underlying
funds").
The following is an overview of the proposal, which is available here.
Purpose of the Proposal
The purpose of the proposal is "to help investors make
informed investment decisions" regarding variable insurance
products by providing them "with key information relating to
the contract's terms, benefits, and risks in a concise and more
reader-friendly presentation, with access to more detailed
information available online and electronically or in paper format
on request."
