The Text of the Dodd-Frank Act
International Association of
Risk and Compliance Professionals (IARCP)
Dodd Frank Act Section 989J
SEC. 989J. FURTHER PROMOTING THE ADOPTION OF THE NAIC MODEL
REGULATIONS THAT ENHANCE PROTECTION OF SENIORS AND OTHER
CONSUMERS.
(a) IN GENERAL.—The
Commission shall treat as exempt securities described under
section 3(a)(8) of the Securities Act of 1933 (15 U.S.C.
77c(a)(8)) any insurance or endowment policy or annuity contract
or optional annuity contract—
(1) the value of which does
not vary according to the performance of a separate account;
(2) that—
(A) satisfies standard nonforfeiture laws or
similar requirements of the applicable State at the time of issue;
or
(B) in the absence of applicable standard nonforfeiture
laws or requirements, satisfies the Model Standard Nonforfeiture
Law for Life Insurance or Model Standard Nonforfeiture Law for
Individual Deferred Annuities, or any successor model law, as
published by the National Association of Insurance Commissioners;
and
(3) that is issued—
(A) on and after June 16,
2013, in a State, or issued by an insurance company that is
domiciled in a State, that—
(i) adopts rules that govern
suitability requirements in the sale of an insurance or endowment
policy or annuity contract or optional annuity contract, which
shall substantially meet or exceed the minimum requirements
established by the Suitability in Annuity Transactions Model
Regulation adopted by the National Association of Insurance
Commissioners in March 2010; and
(ii) adopts rules that
substantially meet or exceed the minimum requirements of any
successor modifications to the model regulations described in
subparagraph
(A) within 5 years of the adoption by the
Association of any further successors thereto; or
(B) by an
insurance company that adopts and implements practices on a
nationwide basis for the sale of any insurance or endowment policy
or annuity contract or optional annuity contract that meet or
exceed the minimum requirements established by the National
Association of Insurance Commissioners Suitability in Annuity
Transactions Model Regulation (Model 275), and any successor
thereto, and is therefore subject to examination by the State of
domicile of the insurance company, or by any other State where the
insurance company conducts sales of such products, for the purpose
of monitoring compliance under this section.
(b)
RULE OF CONSTRUCTION.—Nothing in this
section shall be construed to affect whether any insurance or
endowment policy or annuity contract or optional annuity contract
that is not described in this section is or is not an exempt
security under section 3(a)(8) of the Securities Act of 1933 (15
U.S.C. 77c(a)(8)).
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