May 16, 1990
TO: CONTRACTUAL PLANS COMMITTEE NO. 5-90
RE: PLAN OF ACTION TO DEFEND CONTRACTUAL PLANS IN THE STATES
__________________________________________________________
At its meeting on May 9, 1990, the Contractual Plans
Committee discussed actions various states recently have taken
with respect to contractual plans. As you are aware, certain
states have raised questions concerning contractual plans,
primarily as a result of a study prepared by the Maine Securities
Division (copy attached). The Committee decided that the
Institute should be prepared to meet with the appropriate state
regulators and, if necessary, representatives of the North
American Securities Administrators Association ("NASAA").
In order for the Institute to be prepared to respond to
informal inqueries from the states, please provide the following
information to me by Monday, May 21, 1990:
1. name of each contractual plan and the date the plan
commenced operations;
2. the states each plan is registered in, how it is
registered in each state, or whether an exemption
from registration is relied upon;
3. a copy of the prospectus for each plan; and
4. a copy of any requests for information received
from the states, and a copy of your response (if
any).
In addition, you should prepare a format outlining the
information you feel would be appropriate for industry statistics
that could be used to respond to persistency requests from the
states. This format should be sent to Donald O'Connor, Vice
President, Operations.
Please feel free to contact me if you have any questions.
Patricia Louie
Assistant General Counsel
Attachment