SEC Mulls Variable Life Registration Form

For life insurers, the new form will offer significant savings in terms of printing, postage and storage costs, thanks to the streamlined disclosure and plain-English requirements, Wilkerson says.

Wilkerson predicts the form will put variable life on an equal footing with mutual funds, which have had a streamlined prospectus for some time.

The new form will also benefit consumers, Wilkerson says, because it will be easier for them to read variable life documents and thus make a more informed purchasing decision.

The current variable life registration form is a blend of pre-existing forms that were never designed for variable life products, Wilkerson says.

Wilkerson says he is confident the new form will be streamlined, but he emphasizes that insurers will not know how the SEC resolved certain important issues until the form is published.

These issues include the rules for disclosing fees and charges and the standards for policy illustrations, Wilkerson says.