Securities and Exchange Commission: Indexed Annuities And Certain Other Insurance Contracts
GAO-09-330R: Jan 30, 2009
- Full Report:
GAO reviewed the Securities and Exchange Commission's (SEC) new rule on indexed annuities and certain other insurance contracts. GAO found that (1) the rule defines the terms "annuity contract" and "optional annuity contract" under the Securities Act of 1933, clarifies the status under the federal securities laws of indexed annuities, under which payments to the purchaser are dependent on the performance of a securities index, exempts insurance companies from filing reports under the Securities Exchange Act of 1934 with respect to indexed annuities and other securities that are registered under the Securities Act, provided that certain conditions are satisfied, including that the securities are regulated under state insurance law, the issuing insurance company and its financial condition are subject to supervision and examination by a state insurance regulator, and the securities are not publicly traded; and (2) SEC complied with the applicable requirements in promulgating the rule.