,i #aai? ,,congress #b;d ,session ,h4 ,r4 #ajbcd ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,septemb] #b1 #bjbf,mr4 ,nunn ( ,i[a 7= himself & ,ms4 ,pett]s57 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,f9ancial ,s]vices ,a ,,bill ,to require ! ,securities & ,ex*ange ,commission to create =ms = non-v>iable regi/]$ annuities & life insurance products1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,consum]-,l$ ,enhancem5t ( ,annuity & ,insurance ,regi/ration ,=ms ,act or ! ,,cle> ,=ms ,act4 #b4 ,regi/ration =ms = ,,rilu1 ,,cda1 & o!r regi/]$ non-v>iable insurance contracts 7a7 ,9 g5]al ,! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;a et seq47 is am5d$ by add+ at ! end ! foll[+3 #f;,a4 ,regi/ration =ms = ,,rilu1 ,,cda1 & o!r regi/]$ non-v>iable insurance contracts 7a7 ,def9itions ,9 ?is section3 7#a7 ,cont+5t def]r$ annuity ,! t]m cont+5t def]r$ annuity means an annuity contract or rid]-- 7,a7 t is a security2 7,b7 t is regi/]$1 or t a p]son seeks to regi/]1 ) ! ,commission "u ?is ,act2 7,c7 t is issu$ by an insurance company2 7,d7 t is n issu$ by an inve/m5t company2 & 7,e7 t e/abli%es a life insur]'s obligation to make p]iodic paym5ts = an annuitant's lifetime at ! "t designat$ inve/m5ts1 :i* are n own$ or held by ! insur]1 are deplet$ to a contractually def9$ am\nt due to-- 7i7 contractually p]mitt$ )drawals2 7ii7 m>ket p]=mance2 7iii7 fees or o!r *>ges2 or 7iv7 any o!r contractually p]mitt$ trigg]+ ev5t or transaction4 7#b7 ,cov]$ insurance contract ,! t]m cov]$ insurance contract means any-- 7,a7 cont+5t def]r$ annuity2 7,b7 regi/]$ index-l9k$ life insurance2 or 7,c7 o!r regi/]$ non-v>iable insurance contract4 7#c7 ,fund+ agreem5t ,! t]m fund+ agreem5t means a contract 9 :i* an insur] agrees to accept & accumulate funds to make "o or m paym5ts at future dates 9 am\nts t are n bas$ on mortality or morbidity cont+5cies4 7#d7 ,inve/m5t company ,! t]m inve/m5t company has ! mean+ giv5 ! t]m 9 section #c ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#c74 7#e7 ,m>ket value adju/m5t ,! t]m m>ket value adju/m5t means1 ) respect to a regi/]$ index-l9k$ life insurance1 aft] an e>ly )drawal or contract discont9uance-- 7,a7 an adju/m5t to ! value ( t insurance contract bas$ on calculations us+ a pr$et]m9$ =mula2 or 7,b7 a *ange 9 an int]e/ rate 7or ano!r factor1 z det]m9$ by ! ,commission7 t apply to t insurance contract4 7#f7 ,o!r regi/]$ non-v>iable insurance contract ,! t]m o!r regi/]$ non-v>iable insurance contract means an insurance contract1 c]tificate1 or rid]-- 7,a7 t is a security2 7,b7 t does n con/itute an equity int]e/ 9 ! issu] ( ! contract1 c]tificate1 or rid]2 7,c7 t is an insurance product subject to regulation "u ! insurance laws ( ! domicili>y ,/ate or ,t]ritory ( ! issu] ( ! contract1 c]tificate1 or rid]2 7,d7 t is regi/]$1 or t a p]son seeks to regi/]1 ) ! ,commission "u ?is ,act2 7,e7 t is issu$ by an insurance company2 7,f7 t is n issu$ by an inve/m5t company2 & 7,g7 t is an annuity contract1 life insurance contract1 or fund+ agreem5t4 7#g7 ,pur*as] ,! t]m pur*as] means a pur*as] ( a cov]$ insurance contract4 7#h7 ,regi/]$ index-l9k$ life insurance ,! t]m regi/]$ index-l9k$ life insurance means a life insurance policy or rid]-- 7,a7 t is a security2 7,b7 t is regi/]$1 or t a p]son seeks to regi/]1 ) ! ,commission "u ?is ,act2 7,c7 t is issu$ by an insurance company2 7,d7 t is n issu$ by an inve/m5t company2 & 7,e7 ! returns ( :i*-- 7i7 are bas$ on ! p]=mance ( a specifi$ index or o!r specifi$ b5*m>k2 & 7ii7 may be subject to a m>ket value adju/m5t if am\nts are )drawn or ! contract is discont9u$ be=e ! end ( ! p]iod dur+ :i* t m>ket value adju/m5t applies4 7b7 ,regi/ration =ms rulemak+ 7#a7 ,9 g5]al ,n lat] ?an #ab mon?s aft] ! date ( enactm5t ( ?is section1 ! ,commission %all propose1 &1 n lat] ?an #cj mon?s aft] ! date ( enactm5t ( ?is section1 ! ,commission %all f9alize1 new or am5d$ rules1 z appropriate1 to e/abli% "o or m =ms on :i* an issu] ( a cov]$ insurance contract may regi/] t contract1 subject to conditions ! ,commission det]m9es appropriate4 7#b7 ,design ( =ms ,9 develop+ ! =ms requir$ to be e/abli%$ "u p>agraph 7#a71 ! ,commission %all-- 7,a7 design ! =ms to ensure t a pur*as] us+ ! =ms receives ! in=mation necess>y to make kn[l$geable decisions1 tak+ into acc\nt-- 7i7 ! availability ( in=mation2 7ii7 ! k & sophi/ication ( t class ( pur*as]s2 7iii7 ! l5g? ( ! disclosure requir$ by ! =ms2 7iv7 ! complexity ( regi/]$ index-l9k$ life insurance & cont+5t def]r$ annuities2 & 7v7 any o!r factor ! ,commission det]m9es appropriate2 7,b7 engage 9 inve/or te/+ = cont+5t def]r$ annuity2 & 7,c7 incorporate ! results ( ! te/+ requir$ "u subp>agraph 7,b7 9 ! design ( ! =ms = cont+5t def]r$ annuities1 ) ! goal ( ensur+ t key in=mation is convey$ 9 t]ms t a pur*as] is able to und]/&4 7#c7 ,limitations ,9 e/abli%+ ! =ms describ$ 9 p>agraph 7#a71 ! ,commission %all-- 7,a7 limit ! disclosures reque/$ by su* =ms ) respect to an insurance company to ! disclosures reque/$ by ! =ms describ$ 9 section #bci4ag;b or #bci4ag;c ( title #ag1 ,code ( ,f$]al ,regulations1 z appropriate1 or any successor regulation2 & 7,b7 specify t ! f9ancial /atem5ts reque/$ by su* =ms ) respect to an insurance company are ^? call$ = by ! in/ructions = ! f9ancial /atem5ts 9 ! =ms describ$ 9 sections #bci4ag;b & #bci4ag;c ( title #ag1 ,code ( ,f$]al ,regulations1 or any successor regulation4 7#d7 ,rule #ab;h-#g exemption ,9 issu+ ! rules requir$ by p>agraph 7#a71 ! ,commission may n imp$e ! availability ( an exemption to issu]s describ$ 9 section #bdj4ab;h-#g ( title #ag1 ,code ( ,f$]al ,regulations1 ) reg>d to cov]$ insurance contracts1 t meet ! qualifications = su* exemption4 7#e7 ,o!r relat$ rules ,to ! greate/ ext5t possible1 ! ,commission %all promulgate an ov]all regulatory & fil+ framework t is consi/5t ) ! =ms describ$ 9 sections #bci4ag;b & #bci4ag;c ( title #ag1 ,code ( ,f$]al ,regulations1 9 ord] to enable issu+ insurance companies to (f] all ( ! insurance company's regi/]$ insurance product (f]+s on a consi/5t basis1 includ+ ! availability (-- 7,a7 section #bcj4dih;,a ( title #ag1 ,code ( ,f$]al ,regulations 7p]mitt+ & prescrib+ ! use ( summ>y prospectuses = sep>ate acc\nts (f]+ v>iable annuity & v>iable life insurance contracts1 & = ! (f]+ ( regi/]$ non-v>iable annuity contracts72 7,b7 section #bgj4bd;f-#b ( title #ag1 ,code ( ,f$]al ,regulations 7requir+ issu]s ( c]ta9 inve/m5t company securities & regi/]$ non-v>iable annuity contracts to pay regi/ration fees "u ! ,securities ,act ( #aicc annually bas$ on ! net sales ( su* securities & contracts72 & 7,c7 sections #bcj4dhe & #bcj4dig ( title #ag1 ,code ( ,f$]al ,regulations 7p]mitt+ automatic & imm$iate effectiv5ess = po/-effective am5dm5ts & supplem5ts fil$ by c]ta9 regi/]$ inve/m5t companies & issu]s (f]+ regi/]$ non-v>iable insurance contracts74 7c7 ,rules ( con/ruction ,no?+ 9 ?is section may be con/ru$ to-- 7#a7 except z describ$ 9 subsection 7b77#c71 limit ! au?ority ( ! ,commission to det]m9e ! in=mation to be reque/$ 9 ! =ms describ$ 9 subsection 7b72 or 7#b7 preempt any ,/ate or ,t]ritory law1 regulation1 rule1 or ord]4 4 7b7 ,treatm5t if rules n prep>$ & f9aliz$ 9 a timely mann] 7#a7 ,9 g5]al ,at ! end ( ! #cj-mon? p]iod beg9n+ on ! date ( enactm5t ( ?is ,act1 if ! ,commission has n f9aliz$ ! rules requir$ "u section #f;,a7b77#a7 ( ! ,securities ,act ( #aicc1 any regi/]$ index-l9k$ life insurance or cont+5t def]r$ annuity may be regi/]$ on ! =ms describ$ 9 sections #bci4ag;b & #bci4ag;c ( title #ag1 ,code ( ,f$]al ,regulations1 or any successor regulation1 z appropriate4 7#b7 ,prep>ation ,a regi/ration describ$ 9 p>agraph 7#a7 %all be prep>$ pursuant to applicable provisions ( ! =ms describ$ 9 t p>agraph4 7#c7 ,def9itions ,9 ?is section-- 7,a7 ! t]ms cont+5t def]r$ annuity & regi/]$ index-l9k$ life insurance h ! mean+ giv5 ^? t]ms1 respectively1 9 section #f;,a7a7 ( ! ,securities ,act ( #aicc2 & 7,b7 ! t]m ,commission means ! ,securities & ,ex*ange ,commission4 7#d7 ,t]m9ation ,?is subsection %all t]m9ate on ! date t ! ,commission f9alizes ! rules requir$ "u section #f;,a7b77#a7 ( ! ,securities ,act ( #aicc4