Correspondence 0001104659-23-053133 from PACIFIC SELECT EXEC SEPARATE ACCT PACIFIC LIFE INS (CIK 0000832908)
PACIFIC SELECT EXEC SEPARATE ACCT PACIFIC LIFE INS (CIK 0000832908)
Date: April 28, 2023 · CIK: 0000832908 · Accession: 0001104659-23-053133
AI Filing Summary & Sentiment
File numbers found in text: 333-233112, 333-267433, 811-05563
Letter
Office of General Counsel Office of Insurance Products Division of Investment Management Re: Pacific Life Insurance Company Pacific Select Exec Separate Account – File No. 811-05563 Initial Registration Statement and on Form N-6 Pacific Legacy SVUL - File No. 333-267433
Dear Ms. Choo:
On behalf of Pacific Life Insurance Company (“Pacific Life”) and Pacific Select Exec Separate Account of Pacific Life (811-05563). Set forth below are responses to Staff comments received on February 24, 2023 in connection with the above referenced Initial Registration Statement on Form N-6, filed September 15, 2022.
Prospectus Comments
1. Staff Comment: Table of Contents - Reinsert “Short-Term” in Short-Term No-Lapse Guarantee rider in table of contents and heading and body of prospectus
Response: We respectfully decline to make the requested modification. The Short-Term No-Lapse Guarantee rider name was changed to “No-Lapse Guarantee Rider” and is no longer known as the “Short-Term No-Lapse Guarantee” rider.
2. Staff Comment: Special Terms, Account Deductions – Please revise the second sentence for clarity.
Response: We made the requested modification.
3. Staff Comment: Special Terms, Basic Face Amount, Face Amount – In reference to our previous comment #9, if both the “Basic Face Amount” and “Face Amount” terms are necessary, please better distinguish the terms in the definitions section.
Response: We have updated the definitions of “Basic Face Amount” and “Face Amount” to provide additional clarity and to more closely align them with the changes in Staff Comment #5.
“Basic Face Amount – is the sum of the Face Amounts of all Basic Life Coverage Layers on the Insureds. The Face Amount of the initial Basic Life Coverage is shown in the Policy Specifications. The Face Amount of a Coverage Layer that is not a Basic Life Coverage Layer is not considered Basic Face Amount.”
“Face Amount – the amount of insurance Coverage on the Insureds provided by the Policy Coverage, as shown in the Policy Specifications and any related Supplemental Schedule of Coverage. The Face Amount is subject to increase or decrease as provided elsewhere in the Policy. For some riders, the rider Face Amount will contribute to the Total Face Amount of the Policy and such amount will also constitute a Coverage Layer. For other riders, the rider Face Amount will not contribute to the Total Face Amount and will not constitute a coverage layer under the Policy.”
4. Staff Comment: Special Terms, Basic Life Coverage Layer, Coverage Layer – In reference to our previous comment #10, if both the “Basic Life Coverage Layer” and “Coverage Layer” terms are necessary, please better distinguish the terms in the definition section.
Response: We have updated the definition of “Coverage Layer” to provide additional clarity and aligning it with the changes in Staff Comment #5. We have also modified “Basic Life Coverage Layer” to provide additional clarity.
“Basic Life Coverage Layer – is a layer of Basic Life Coverage on the Insureds. There may be one or more Basic Life Coverage Layers created at issue. In addition, each increase in Basic Face Amount will create a new Basic Life Coverage Layer. Each Basic Life Coverage Layer has its own Face Amount, Risk Class, Coverage Layer Date, and set of charges. Initial amounts will be shown in the Policy Specifications and any additional coverage layers added after issue will be shown in the Supplemental Schedule of Coverage.”
“Coverage Layer – is insurance coverage on the Insureds provided by this Policy. Generally, increases in the Basic Face Amount under the Policy are referred to as a “Coverage Layer”. For some riders, the rider Face Amount will contribute to the Total Face Amount of the Policy and such amount will also constitute a Coverage Layer. For other riders, the rider Face Amount will not contribute to the Total Face Amount and will not constitute a coverage layer under the Policy.”
5. Staff Comment: Special Terms, Riders - Consider adding disclosure to the effect that “for some riders, the rider face amount will contribute to the total face amount of the policy, such amount will also constitute a coverage layer, while for other riders it will not constitute a coverage layer under the policy.”
Response: We made the requested modification.
6. Staff Comment: Important Information You Should Consider About The Policy, Fees and Expenses, Transaction Charges – In the last sentence, please add “and fees with the exercise of certain riders.”
Response: We made the requested modification.
7. Staff Comment: Risks, Contract Lapse – In the first paragraph, second sentence, please add “and fees may increase in connection with the exercise of certain riders”.
Response: We have updated the language in the first paragraph to align with the language in the Principal Risks of Investing in the Policy – Policy Lapse section.
“Your Policy remains In Force as long as you have sufficient Net Accumulated Value to cover your Policy’s monthly deductions of Policy charges. Insufficient premium payments, poor investment performance, withdrawals, unpaid loans or loan interest and fees associated with the exercise of certain riders may cause your Policy to lapse – which means no death benefit or other benefits will be paid. The Policy may be eligible for the No-Lapse Guarantee Rider that may help prevent the Policy from Lapsing. See the No-Lapse Guarantee Rider in the OTHER BENEFITS AVAILABLE UNDER THE POLICY section in this prospectus.”
8. Staff Comment: Risks, Contract Lapse – In the second paragraph, second sentence, it is noted in your response to the original Comment 17 that with regard to the Risk Classes, that a reinstatement, if approved,
will use the same Risk Classes. If this is not the case, please reconcile this difference.
Response: We made the requested modification.
“If the Policy lapses, you have three years from the end of the Grace Period to apply for reinstatement. There is no guarantee that reinstatement will be approved and there are costs associated with reinstating a lapsed Policy. If the Policy is reinstated, the same Risk Classes in use at the time of lapse will apply to the reinstated Policy.”
9. Staff Comment: Overview of the Policy, Premiums. In reference to our previous comment #22, in the “Other Benefits Available Under the Policy” section the rider is listed as a standard feature. Please reconcile one section listing it as a standard feature and in the other it is not.
Response: Response: In the “Other Benefits Available Under the Policy” there are two other riders (Enhanced Policy Split Option and Policy Split Option) that are listed as a “Standard” benefit along with a bullet in the Brief Description of Restrictions/Limitations column that states, “Automatically added at Policy Issue, if eligible”. The No-Lapse Guarantee Rider includes a similar bullet in the Brief Description of Restrictions/Limitations column that states, “Automatically issued on your Policy if Insureds are Age 79 and younger and Death Benefit Option A or B is chosen at Policy Issue.” For additional clarity, we changed the “Standard” entry in the Is the Benefit Standard or Optional column to “Standard, if eligible”.
10. Staff Comment: Overview Of The Policy, Policy Features, Surrender - With respect to tax reporting, tax reporting is not the same as tax consequences. Please revise “may be subject to tax reporting” to also include “may have tax consequences, including a possible tax penalty if surrendered before age 59 ½.”
Response: We have made changes to align this item to the staff comments received on Post Effective Amendment #6 on File Number 333-233112 for Key Exec VUL.
“You can surrender your Policy at any time while the Insured is alive. Any outstanding loan or loan interest will be deducted, and surrender proceeds will be paid in a single lump sum check. Upon surrender, you will have no life insurance coverage or benefits under this Policy. The surrender proceeds, or a portion of, may be subject to tax consequences, including a possible tax penalty on MEC policies for certain situations including, but not limited to surrendering a policy owned by a natural person(s) before age 59 ½. Please consult your tax advisor. This Policy includes an Enhanced Cash Value Benefit which is designed to remove any surrender charge for all Policy Years and may add an additional amount to the Net Cash Surrender Value if the Policy is fully surrendered during Policy Years 1 through 11.”
11. Staff Comment: Periodic Charges Other Than Fund Operating Expenses, Footnote #4. After the sentence “For more information on how the Coverage Charge is calculated”, per original comment 31, add “after the first 10 years of the Coverage Layer.”
Response: We made the requested modification.
12. Staff Comment: Principal Risk Of Investing In The Policy, Policy Lapse - In the last paragraph, first sentence, reconcile this sentence with the prior disclosure in the Risks, Contract Lapse section that states “you may apply for reinstatement during the first three Policy Years.”
Response: We have changed the language in the Risks, Contract Lapse section to match the language in the Principal Risks Of Investing In The Policy, Policy Lapse section.
13. Staff Comment: Policy Basics, Owners, the Insures, and Beneficiaries, Owners- In the first paragraph, you addressed a portion of our previous comment #33 but not all. We reiterate our previous comments and ask that you make it clear that one owner would make the decision for both insureds.
Response: We made the requested modification.
“You can own a Policy by yourself or with someone else. The Owner(s) do not need to be one or both of the Insureds. If the Owner(s), are not the Insureds and even if there is only one Owner, they will be making decisions on behalf of the Insureds. You need the signatures of all Owners for all Policy transactions. If an owner is not indicated on the application, ownership will default to both insureds.”
14. Staff Comment: Policy Basics, Illustrations – “Illustration” is defined as a display of hypothetical future benefits based on factors including both historical and hypothetical rates. We reiterate our previous comment #35 to add “historical or” immediately before “a hypothetical gross rate of return” in the third bullet point.
Response: We have clarified in the third bullet point those illustrations used for Policy Issue use hypothetical rates. We have added a fourth bullet point clarifying that illustrations used after the Policy is In Force use both historical and hypothetical rates.
· “Illustrations used for Policy Issue that use a hypothetical gross rate of return up to 12% are available.
· Illustrations used after your Policy is In Force use both historical and hypothetical rates.”
15. Staff Comment: Policy Basics, Telephone and Electronic Transactions. As a follow up to our previous comment #36, please make it clear that loan increases and repayments can be authorized.
Response: We made the requested modification.
16. Staff Comment: Death Benefits, Death Benefit Options – In reference to our previous comment #40, please revise the disclosure to also include cost of insurance charges as a consideration in choosing a Death Benefit Option.
Response: We made the requested modification.
17. Staff Comment: Death Benefit Options, Change Your Death Benefit Option. In the second bullet point, it states “you can change from one Death Benefit Option to the other”. Change “other” to “another” as “other” suggests that there are only two options.
Response: We made the requested modification.
18. Staff Comment: Other Benefits Available Under the Policy. In reference to previous comment #47, it is now the staff’s position that loans must be added to the Other Benefits Available Under the Policy table.
Response: We made the requested modification.
19. Staff Comment: Other Benefits Available Under The Policy, Enhanced Policy Split Option Rider. In the third bullet point, change “accordance” to “occurrence”.
Response: We made the requested modification.
20. Staff Comment: Other Benefits Available Under The Policy, Terminal Illness Rider – Last Survivor. In the last bullet point, third sentence, insert “The” at the start of the sentence.
Response: We made the requested modification.
21. Staff Comment: Optional Riders And Benefits, Enhanced Policy Split Option Rider, New Policy Conditions. In the fourth bullet point, changes were made to the parallel disclosure in the Conversion Rider.
Please confirm that those changes don’t also apply to the Policy Split Option Rider or Enhanced Policy Split Option Rider as the Conversion Rider language is more generous regarding the surrender changes waived than the language in these two riders.
Response: The terms of the Enhanced Policy Split Option rider waive the surrender charges on any amount of Accumulated Value less Policy Debt transferred from the Policy to purchase new policies. We have corrected the language for this rider in this section to align with the terms of the rider.
The terms of the Policy Split Option rider do not waive the surrender charges when the rider is exercised. However, based on previous comments from the SEC, we cannot assess surrender charges or premium loads on Accumulated Value less Policy Debt transferred from variable universal life policies to another variable universal life policy. The second bullet in the Policy Split Option rider, New Policy Conditions should remain as stated.
22. Staff Comment: Optional Riders And Benefits, Enhanced Policy Split Option Rider, Example. In the second paragraph, second sentence, remove “If the new policies are variable universal life policies” based on the assumption in Staff Comment #21.
Response: We made the requested modification.
23. Staff Comment: Optional Riders And Benefits, Policy Split Option Rider, New Policy Considerations. Remove “If the new policies are variable universal life policies” to align with the Conversion Rider.
Response: We respectfully repeat the response made in Staff Comment 21.
The terms of the Policy Split Option rider do not waive the surrender charges when the rider is exercised. However, based on previous comments from the SEC, we cannot assess surrender charges or premium loads on Accumulated Value less Policy Debt transferred from variable universal life policies to another variable universal life policy. The second bullet in the Policy Split Option rider, New Policy Conditions should remain as stated.
24. Staff Comment: Optional Riders And Benefits, Policy Split Option Rider, Example. The new policies will not assess premium load on the Accumulated Value less Policy Debt that is transferred from the Policy. Reiterating previous comment #60, please add that the company will waive surrender charges on the amount transferred from the old Policy.
Response: Similar to our response to Staff Comment #21, we have added clarification that per the terms of the Rider, we will waive surrender charges only if the Accumulated Value less Policy Debt is being transferred to variable universal policies.
25. Staff Comment: Optional Riders And Benefits, Premier Living Benefits Rider 2. In the first bold paragraph, third sentence beginning with “Other Policy values”, add “Policy Loans” to this list, if accurate.
Response: We have included “Policy Debt” instead of the suggested “Policy Loans” as this aligns with the Rider contract language.
26. Staff Comment: Optional Riders And Benefits, Premier Living Benefits Rider 2, Accelerated Death Benefit Payments and Values - Chronic Illness Benefit. In
Show Raw Text
CORRESP
1
filename1.htm
THOMAS C. BILELLO
Vice President and Associate General Counsel
Office of General Counsel
(949) 420-7078 Telephone
(949) 219-3706 Facsimile
Thomas.Bilello@PacificLife.com
April 28, 2023
Yoon Choo
Senior Counsel
Office of Insurance Products
Division of Investment Management
U.S. Securities & Exchange Commission
100 F Street, NE
Washington, DC 20549-0506
Re:
Pacific Life Insurance Company
Pacific Select Exec Separate Account – File No. 811-05563
Initial Registration Statement and on Form N-6
Pacific Legacy SVUL - File No. 333-267433
Dear Ms. Choo:
On behalf of Pacific Life Insurance Company (“Pacific
Life”) and Pacific Select Exec Separate Account of Pacific Life (811-05563). Set forth below are responses to Staff comments received
on February 24, 2023 in connection with the above referenced Initial Registration Statement on Form N-6, filed September 15, 2022.
Prospectus Comments
1. Staff Comment: Table of Contents - Reinsert
“Short-Term” in Short-Term No-Lapse Guarantee rider in table of contents and heading and body of prospectus
Response: We respectfully decline to make the requested
modification. The Short-Term No-Lapse Guarantee rider name was changed to “No-Lapse Guarantee Rider” and is no longer known
as the “Short-Term No-Lapse Guarantee” rider.
2. Staff Comment: Special Terms, Account
Deductions – Please revise the second sentence for clarity.
Response: We made the requested modification.
3. Staff Comment: Special Terms, Basic Face
Amount, Face Amount – In reference to our previous comment #9, if both the “Basic Face Amount” and “Face Amount”
terms are necessary, please better distinguish the terms in the definitions section.
Response: We have updated the definitions of “Basic
Face Amount” and “Face Amount” to provide additional clarity and to more closely align them with the changes in Staff
Comment #5.
“Basic Face Amount – is the sum of the
Face Amounts of all Basic Life Coverage Layers on the Insureds. The Face Amount of the initial Basic Life Coverage is shown in the Policy
Specifications. The Face Amount of a Coverage Layer that is not a Basic Life Coverage Layer is not considered Basic Face Amount.”
“Face Amount – the amount of insurance
Coverage on the Insureds provided by the Policy Coverage, as shown in the Policy Specifications and any related Supplemental Schedule
of Coverage. The Face Amount is subject to increase or decrease as provided elsewhere in the Policy. For some riders, the rider Face Amount
will contribute to the Total Face Amount of the Policy and such amount will also constitute a Coverage Layer. For other riders, the rider
Face Amount will not contribute to the Total Face Amount and will not constitute a coverage layer under the Policy.”
4. Staff Comment: Special Terms, Basic Life
Coverage Layer, Coverage Layer – In reference to our previous comment #10, if both the “Basic Life Coverage Layer”
and “Coverage Layer” terms are necessary, please better distinguish the terms in the definition section.
Response: We have updated the definition of “Coverage
Layer” to provide additional clarity and aligning it with the changes in Staff Comment #5. We have also modified “Basic Life
Coverage Layer” to provide additional clarity.
“Basic Life Coverage Layer – is a layer
of Basic Life Coverage on the Insureds. There may be one or more Basic Life Coverage Layers created at issue. In addition, each increase
in Basic Face Amount will create a new Basic Life Coverage Layer. Each Basic Life Coverage Layer has its own Face Amount, Risk Class,
Coverage Layer Date, and set of charges. Initial amounts will be shown in the Policy Specifications and any additional coverage layers
added after issue will be shown in the Supplemental Schedule of Coverage.”
“Coverage Layer – is insurance coverage
on the Insureds provided by this Policy. Generally, increases in the Basic Face Amount under the Policy are referred to as a “Coverage
Layer”. For some riders, the rider Face Amount will contribute to the Total Face Amount of the Policy and such amount will also
constitute a Coverage Layer. For other riders, the rider Face Amount will not contribute to the Total Face Amount and will not constitute
a coverage layer under the Policy.”
5. Staff Comment: Special Terms, Riders
- Consider adding disclosure to the effect that “for some riders, the rider face amount will contribute to the total face amount
of the policy, such amount will also constitute a coverage layer, while for other riders it will not constitute a coverage layer under
the policy.”
Response: We made the requested modification.
6. Staff Comment: Important Information
You Should Consider About The Policy, Fees and Expenses, Transaction Charges – In the last sentence, please add “and
fees with the exercise of certain riders.”
Response: We made the requested modification.
7. Staff Comment: Risks, Contract Lapse
– In the first paragraph, second sentence, please add “and fees may increase in connection with the exercise of certain
riders”.
Response: We have updated the language in the first
paragraph to align with the language in the Principal Risks of Investing in the Policy – Policy Lapse section.
“Your Policy remains In Force as long as you have sufficient
Net Accumulated Value to cover your Policy’s monthly deductions of Policy charges. Insufficient premium payments, poor investment
performance, withdrawals, unpaid loans or loan interest and fees associated with the exercise of certain riders may cause your Policy
to lapse – which means no death benefit or other benefits will be paid. The Policy may be eligible for the No-Lapse Guarantee Rider
that may help prevent the Policy from Lapsing. See the No-Lapse Guarantee Rider in the OTHER BENEFITS AVAILABLE UNDER THE POLICY
section in this prospectus.”
8. Staff Comment: Risks, Contract Lapse
– In the second paragraph, second sentence, it is noted in your response to the original Comment 17 that with regard to the
Risk Classes, that a reinstatement, if approved,
will use the same Risk Classes. If this is not the case,
please reconcile this difference.
Response: We made the requested modification.
“If the Policy lapses, you have three years from the
end of the Grace Period to apply for reinstatement. There is no guarantee that reinstatement will be approved and there are costs associated
with reinstating a lapsed Policy. If the Policy is reinstated, the same Risk Classes in use at the time of lapse will apply to the reinstated
Policy.”
9. Staff Comment: Overview of the Policy,
Premiums. In reference to our previous comment #22, in the “Other Benefits Available Under the Policy” section
the rider is listed as a standard feature. Please reconcile one section listing it as a standard feature and in the other it is not.
Response: Response: In the “Other Benefits
Available Under the Policy” there are two other riders (Enhanced Policy Split Option and Policy Split Option) that are listed
as a “Standard” benefit along with a bullet in the Brief Description of Restrictions/Limitations column that states,
“Automatically added at Policy Issue, if eligible”. The No-Lapse Guarantee Rider includes a similar bullet in the Brief
Description of Restrictions/Limitations column that states, “Automatically issued on your Policy if Insureds are Age 79 and
younger and Death Benefit Option A or B is chosen at Policy Issue.” For additional clarity, we changed the “Standard”
entry in the Is the Benefit Standard or Optional column to “Standard, if eligible”.
10. Staff Comment: Overview Of The Policy,
Policy Features, Surrender - With respect to tax reporting, tax reporting is not the same as tax consequences. Please revise “may
be subject to tax reporting” to also include “may have tax consequences, including a possible tax penalty if surrendered before
age 59 ½.”
Response: We have made changes to align this item
to the staff comments received on Post Effective Amendment #6 on File Number 333-233112 for Key Exec VUL.
“You can surrender your Policy at any time while
the Insured is alive. Any outstanding loan or loan interest will be deducted, and surrender proceeds will be paid in a single lump sum
check. Upon surrender, you will have no life insurance coverage or benefits under this Policy. The surrender proceeds, or a portion of,
may be subject to tax consequences, including a possible tax penalty on MEC policies for certain situations including, but not limited
to surrendering a policy owned by a natural person(s) before age 59 ½. Please consult your tax advisor. This Policy includes an
Enhanced Cash Value Benefit which is designed to remove any surrender charge for all Policy Years and may add an additional amount to
the Net Cash Surrender Value if the Policy is fully surrendered during Policy Years 1 through 11.”
11. Staff Comment: Periodic Charges Other
Than Fund Operating Expenses, Footnote #4. After the sentence “For more information on how the Coverage Charge is calculated”,
per original comment 31, add “after the first 10 years of the Coverage Layer.”
Response: We made the requested modification.
12. Staff Comment: Principal Risk Of Investing
In The Policy, Policy Lapse - In the last paragraph, first sentence, reconcile this sentence with the prior disclosure in the Risks,
Contract Lapse section that states “you may apply for reinstatement during the first three Policy Years.”
Response: We have changed the language in the Risks,
Contract Lapse section to match the language in the Principal Risks Of Investing In The Policy, Policy Lapse section.
13. Staff Comment: Policy Basics, Owners,
the Insures, and Beneficiaries, Owners- In the first paragraph, you addressed a portion of our previous comment #33 but not all. We
reiterate our previous comments and ask that you make it clear that one owner would make the decision for both insureds.
Response: We made the requested modification.
“You can own a Policy by yourself or with someone else.
The Owner(s) do not need to be one or both of the Insureds. If the Owner(s), are not the Insureds and even if there is only one Owner,
they will be making decisions on behalf of the Insureds. You need the signatures of all Owners for all Policy transactions. If an owner
is not indicated on the application, ownership will default to both insureds.”
14. Staff Comment: Policy Basics, Illustrations
– “Illustration” is defined as a display of hypothetical future benefits based on factors including both
historical and hypothetical rates. We reiterate our previous comment #35 to add “historical or” immediately before “a
hypothetical gross rate of return” in the third bullet point.
Response: We have clarified in the third bullet point
those illustrations used for Policy Issue use hypothetical rates. We have added a fourth bullet point clarifying that illustrations used
after the Policy is In Force use both historical and hypothetical rates.
· “Illustrations used for Policy Issue that use a hypothetical gross rate of return up to 12% are available.
· Illustrations used after your Policy is In Force use both historical and hypothetical rates.”
15. Staff Comment: Policy Basics, Telephone
and Electronic Transactions. As a follow up to our previous comment #36, please make it clear that loan increases and repayments can
be authorized.
Response: We made the requested modification.
16. Staff Comment: Death Benefits, Death
Benefit Options – In reference to our previous comment #40, please revise the disclosure to also include cost of insurance charges
as a consideration in choosing a Death Benefit Option.
Response: We made the requested modification.
17. Staff Comment: Death Benefit Options,
Change Your Death Benefit Option. In the second bullet point, it states “you can change from one Death Benefit Option to the
other”. Change “other” to “another” as “other” suggests that there are only two options.
Response: We made the requested modification.
18. Staff Comment: Other Benefits Available
Under the Policy. In reference to previous comment #47, it is now the staff’s position that loans must be added to the Other
Benefits Available Under the Policy table.
Response: We made the requested modification.
19. Staff Comment: Other Benefits Available
Under The Policy, Enhanced Policy Split Option Rider. In the third bullet point, change “accordance” to “occurrence”.
Response: We made the requested modification.
20. Staff Comment: Other Benefits Available
Under The Policy, Terminal Illness Rider – Last Survivor. In the last bullet point, third sentence, insert “The”
at the start of the sentence.
Response: We made the requested modification.
21. Staff Comment: Optional Riders And Benefits,
Enhanced Policy Split Option Rider, New Policy Conditions. In the fourth bullet point, changes were made to the parallel disclosure
in the Conversion Rider.
Please confirm that those changes don’t also apply
to the Policy Split Option Rider or Enhanced Policy Split Option Rider as the Conversion Rider language is more generous regarding the
surrender changes waived than the language in these two riders.
Response: The terms of the Enhanced Policy Split Option
rider waive the surrender charges on any amount of Accumulated Value less Policy Debt transferred from the Policy to purchase new policies.
We have corrected the language for this rider in this section to align with the terms of the rider.
The terms of the Policy Split Option rider do not waive the
surrender charges when the rider is exercised. However, based on previous comments from the SEC, we cannot assess surrender charges or
premium loads on Accumulated Value less Policy Debt transferred from variable universal life policies to another variable universal life
policy. The second bullet in the Policy Split Option rider, New Policy Conditions should remain as stated.
22. Staff Comment: Optional Riders And Benefits,
Enhanced Policy Split Option Rider, Example. In the second paragraph, second sentence, remove “If the new policies are variable
universal life policies” based on the assumption in Staff Comment #21.
Response: We made the requested modification.
23. Staff Comment: Optional Riders And Benefits,
Policy Split Option Rider, New Policy Considerations. Remove “If the new policies are variable universal life policies”
to align with the Conversion Rider.
Response: We respectfully repeat the response made
in Staff Comment 21.
The terms of the Policy Split Option rider do not waive the
surrender charges when the rider is exercised. However, based on previous comments from the SEC, we cannot assess surrender charges or
premium loads on Accumulated Value less Policy Debt transferred from variable universal life policies to another variable universal life
policy. The second bullet in the Policy Split Option rider, New Policy Conditions should remain as stated.
24. Staff Comment: Optional Riders And Benefits,
Policy Split Option Rider, Example. The new policies will not assess premium load on the Accumulated Value less Policy Debt that
is transferred from the Policy. Reiterating previous comment #60, please add that the company will waive surrender charges on the amount
transferred from the old Policy.
Response: Similar to our response to Staff Comment
#21, we have added clarification that per the terms of the Rider, we will waive surrender charges only if the Accumulated Value less Policy
Debt is being transferred to variable universal policies.
25. Staff Comment: Optional Riders And Benefits,
Premier Living Benefits Rider 2. In the first bold paragraph, third sentence beginning with “Other Policy values”, add
“Policy Loans” to this list, if accurate.
Response: We have included “Policy Debt”
instead of the suggested “Policy Loans” as this aligns with the Rider contract language.
26. Staff Comment: Optional Riders And Benefits,
Premier Living Benefits Rider 2, Accelerated Death Benefit Payments and Values - Chronic Illness Benefit. In