Variable Life Insurance and Variable Annuity Communications

What this video covers

• Why a variable product must be clearly identified as a variable life insurance policy or a variable annuity, and why it can never be called a mutual fund, short-term investment, or retirement plan
• How the balanced liquidity discussion requirement works: any mention of access or liquidity must be paired with surrender charges, potential loss of principal, and the 10% Internal Revenue Service (IRS) early withdrawal penalty before age 59 1/2
• What the guarantee caveats actually cover: guarantees like the guaranteed minimum income benefit (GMIB) and guaranteed minimum withdrawal benefit (GMWB) depend solely on the issuing insurance company's claims-paying ability, not the separate account's investment returns
• Why variable products must always be described as tax-deferred, never tax-free, and how calling them tax-free triggers both communications rule violations and potential antifraud liability
• When historical subaccount performance predating its inclusion in the variable product is permissible, specifically requiring no significant changes to the underlying fund and standardized methodology consistent with open-end fund advertising
• What triggers the 7-business-day registered principal review under the deferred variable annuity sales-practice rule: Office of Supervisory Jurisdiction (OSJ) receipt of a complete application package, not customer signature, and what suitability factors Sam must verify including the 36-month exchange lookback