Correspondence 0000726865-24-000822 from LINCOLN NEW YORK ACCOUNT N FOR VARIABLE ANNUITIES (CIK 0001093278)
LINCOLN NEW YORK ACCOUNT N FOR VARIABLE ANNUITIES (CIK 0001093278)
Date: Dec. 6, 2024 · CIK: 0001093278 · Accession: 0000726865-24-000822
AI Filing Summary & Sentiment
File numbers found in text: 333-171097, 333-176213, 333-181617, 333-214111
Letter
Division of Investment Management File No. 333-181617; Post-Effective Amendment No. 29 Lincoln New York Account N for Variable Annuities File No. 333-176213; Post-Effective Amendment No. 33 File No. 333-214111; Post-Effective Amendment No. 21
Dear Mr. Brodsky:
Thank you for the comments you provided by telephone on November 26, 2024, regarding the above-referenced filings. The attached blacklined prospectuses reflect the changes we have made to address those comments.
As we discussed, comments 2, 3, 4, 5, 7, 8, and 13 appear to derive from the new Form N-4. Those comments have been acknowledged, and we will comply with them prior to the effective date of the new Form.
1.
Rate sheet: Please clarify that the rates can be superseded “at any time.”
Response: The disclosure has been added.
2.
Cover Page: Please include a cross-reference to the prospectus appendix providing additional information about each investment option, as required by Item 1(a)(6) of Form N-4.
Response: This comment has been acknowledged, and we will comply with it prior to the effective date of the new Form.
3.
Cover Page: Please include a statement that the contract is a complex investment and involves risks, including potential loss of principal, as required by Item 1(a)(6).
Response: This comment has been acknowledged, and we will comply with it prior to the effective date of the new Form.
4.
Cover Page: Please include a statement that the contract is not a short-term investment and not appropriate for an investor who needs ready access to cash, as required by Item 1(a)(7).
Response: This comment has been acknowledged, and we will comply with it prior to the effective date of the new Form.
5.
Cover Page: Please briefly state that withdrawals could result in surrender charges, negative contract adjustments, if applicable, taxes, and tax penalties as applicable, as required by Item 1(a)(7).
Response: This comment has been acknowledged, and we will comply with it prior to the effective date of the new Form.
6.
Cover Page: The free look disclosure states that “upon cancellation you will receive “… the greater of a full refund of the amount you paid with your application or your Contract Value.” This statement conflicts with the cancellation provisions outlined in the Return Privilege section on page 57. Please reconcile.
Response: The language on page 57 has been updated to agree with the cover page.
7.
Cover Page: Please state that the insurance company’s obligations under the contract are subject to its financial strength and claims paying ability, as required by Item 1(a)(8).
Response: This comment has been acknowledged, and we will comply with it prior to the effective date of the new Form.
8.
Key Information Table: Please present all disclosure in a Q&A format.
Response: This comment has been acknowledged, and we will comply with it prior to the effective date of the new Form.
9.
Key Information Table – Charges for Early Withdrawal: Please define the “free withdrawal amount”.
Response: This disclosure has been re-written, and this term has been removed.
10.
Key Information Table – Charges for Early Withdrawal: Please supplement the surrender charge example to illustrate the contract value declining to zero.
Response: This revision has been made.
11.
Key Information Table – Lowest/Highest Annual Cost Table: Please include a statement that refers the contractowner to the rate sheet.
Response: This disclosure has been added.
12.
Overview of the Contract – Purpose of the Contract: Regarding the phrase “benefits offered under the contract may be a variable or fixed amount, if available”, please clarify “if available” and what it is referencing.
Response: This sentence has been deleted, as, upon reflection, we determined it to be unnecessary.
13.
Overview of the Contract – Primary Features and Options of the Contract: Please prominently disclose that information about each investment option is in the appendix, and provide a cross reference to the appendix, as required by Item 2(b).
Response: This comment has been acknowledged, and we will comply with it prior to the effective date of the new Form.
14.
Fee Tables – Surrender Charges: Please clarify whether this is a maximum fee or a current fee.
Response: The percentage shown in the table is the maximum surrender charge, and this has been noted.
15.
Fee Tables: If applicable, please clarify in a footnote which optional benefits cannot be held at the same time. (Item 4)
Response: A footnote has been added.
16.
Fee Tables – Annual Fund Expense: Please include the following disclosure in the paragraph before the table, if applicable: “Expenses shown may change over time and may be higher or lower in the future.”
Response: This statement has been added.
17.
Purchase Payment Risk: Please define Servicing Office or provide a cross reference.
Response: Contracts issued by LNY are serviced by our Home Office (Fort Wayne, Indiana). The Servicing Office location is noted at the top of page 1 of the prospectus.
18.
i4LIFE® Advantage: Please define AIR.
Response: AIR is the acronym for “assumed investment return,” and it is defined in the bulleted listing under “Regular Income Payments during the Access Period.”
19.
Custody Agreement: Please provide a Custody Agreement if the contract is offering variable options.
Response: This requirement is not applicable to separate accounts/unit investment trusts, as the insurance company retains custody of the assets.
20.
Please state the insurance company’s obligations are subject to its financial strength and claims paying ability, as required by Items 6(a) and 8(c).
Response: We believe this requirement is satisfied by our current language, which appears in the final paragraph under Charges and Other Deductions –
Obligations under the contracts that are funded by our general account (rather than the Variable Annuity Account) include (1) the obligation to make lifetime or other benefit payments under Living Benefit Riders that exceed the Contract Value; (2) the obligation to pay Death Benefits that exceed the Contract Value; (3) the obligation to pay Annuity Payouts that exceed the Contract Value. Payment of these benefits and obligations is subject to our claims-paying ability and financial strength. We are also responsible for providing for all of the administrative services necessary in connection with the contracts (and bearing all of the associated expenses).
File No. 333-214111
Charges and Other Deductions: Please disclose or direct us to the following three items regarding the advisory fee:
1)
The basis upon which the advisory fee is calculated.
2)
An explanation of how and when the fee will be deducted.
3)
A brief explanation of the deduction of advisory fee authorization agreement between the insurer and the contractowner including how the contractowner may terminate the agreement.
Response: These contracts are issued as part of fee-based financial plans, whereby an investment professional provides investment advice for a fee, and the contractowner pays the fee directly to the investment professional. Under these arrangements, the fee is set by the investment professional and is covered in a separate agreement between the professional and the contractowner. LNY is not a party to these agreements, does not impose an advisory fee, and receives no portion of the advisory fee. This information is clearly discussed in the prospectus under “Purchase of Contracts” and “Fees Associated with Fee-Based Financial Plans”.
File No. 333-181617
1.
Key Information Table – Charges for Early Withdrawals: Please provide the missing words in the first sentence.
Response: The missing words have been added.
2.
Death Benefits – Guarantee of Principal Death Benefit: Please provide the missing word(s) in the second bullet.
Response: The missing words have been added.
3.
Part C: The Bylaws and Certificate of Incorporation are missing from this filing. Please provide.
Response: The charter and bylaws of LNY will be filed, respectively, as Exhibits (f)(1) and (f)(2) in the upcoming 485(b) filing.
We sincerely appreciate your attention to this filing, and your review and comments. Please call me at 860-466-1111 with any questions or additional comments.
Sincerely,
Carolyn Augur
Show Raw Text
CORRESP
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filename1.htm
Lincoln Financial
Law Department
The Lincoln National Life Insurance Company
350 Church Street
Hartford, CT 06103
Carolyn Augur
Assistant Vice President
and Senior Counsel
Phone: 860-466-1111
Carolyn.Augur@LFG.com
VIA Email & EDGAR
December 6, 2024
Aaron Brodsky
Attorney-Adviser
U.S. Securities and Exchange Commission
Division of Investment Management
Disclosure Review and Accounting Office
100 F Street, NE
Washington, DC 20549
Re: Lincoln Life & Annuity Company of New York (“LNY”)
Lincoln Life & Annuity Variable Annuity Account H
File No. 333-171097; Post-Effective Amendment No. 36
File No. 333-181617; Post-Effective Amendment No. 29
Lincoln New York Account N for Variable Annuities
File No. 333-176213; Post-Effective Amendment No. 33
File No. 333-214111; Post-Effective Amendment No. 21
Dear Mr. Brodsky:
Thank you for the comments you provided by telephone on November 26, 2024, regarding the above-referenced filings. The attached blacklined prospectuses
reflect the changes we have made to address those comments.
As we discussed, comments 2, 3, 4, 5, 7, 8, and 13 appear to derive from the new Form N-4. Those comments have been acknowledged, and we will comply with them
prior to the effective date of the new Form.
1.
Rate sheet:
Please clarify that the rates can be superseded “at any time.”
Response: The disclosure has
been added.
2.
Cover Page:
Please include a cross-reference to the prospectus appendix providing additional information about each investment option, as required by Item 1(a)(6) of Form N-4.
Response:
This comment has been acknowledged, and we will comply with it prior to the effective date of the new Form.
3.
Cover Page:
Please include a statement that the contract is a complex investment and involves risks, including potential loss of principal, as required by Item 1(a)(6).
Response:
This comment has been acknowledged, and we will comply with it prior to the effective date of the new Form.
4.
Cover Page:
Please include a statement that the contract is not a short-term investment and not appropriate for an investor who needs ready access to cash, as required by Item 1(a)(7).
Response: This comment has
been acknowledged, and we will comply with it prior to the effective date of the new Form.
5.
Cover Page:
Please briefly state that withdrawals could result in surrender charges, negative contract adjustments, if applicable, taxes, and tax penalties as applicable, as required by Item 1(a)(7).
Response:
This comment has been acknowledged, and we will comply with it prior to the effective date of the new Form.
6.
Cover Page: The free look disclosure states that “upon cancellation you will receive “… the greater of a full refund of the amount you paid with your application or your
Contract Value.” This statement conflicts with the cancellation provisions outlined in the Return Privilege section on page 57. Please reconcile.
Response: The language on
page 57 has been updated to agree with the cover page.
7.
Cover Page:
Please state that the insurance company’s obligations under the contract are subject to its financial strength and claims paying ability, as required by Item 1(a)(8).
Response: This comment has
been acknowledged, and we will comply with it prior to the effective date of the new Form.
8.
Key Information Table: Please present
all disclosure in a Q&A format.
Response: This comment has
been acknowledged, and we will comply with it prior to the effective date of the new Form.
9.
Key Information Table – Charges for Early
Withdrawal: Please define the “free withdrawal amount”.
Response: This disclosure has
been re-written, and this term has been removed.
10.
Key Information Table –
Charges for Early Withdrawal: Please supplement the surrender charge example to illustrate the contract value declining to zero.
Response: This revision has
been made.
11.
Key Information Table –
Lowest/Highest Annual Cost Table: Please include a statement that refers the contractowner to the rate sheet.
Response: This disclosure has
been added.
12.
Overview of the Contract –
Purpose of the Contract: Regarding the phrase “benefits offered under the contract may be a variable or fixed amount, if available”, please clarify “if available” and what it is referencing.
Response: This sentence has been deleted, as, upon reflection, we determined it to be unnecessary.
13.
Overview of the Contract –
Primary Features and Options of the Contract: Please prominently disclose that information about each investment option is in the appendix, and provide a cross reference to the appendix, as required by Item 2(b).
Response: This comment has
been acknowledged, and we will comply with it prior to the effective date of the new Form.
14.
Fee Tables – Surrender Charges: Please clarify whether this is a maximum fee or a current fee.
Response: The percentage
shown in the table is the maximum surrender charge, and this has been noted.
15.
Fee Tables: If
applicable, please clarify in a footnote which optional benefits cannot be held at the same time. (Item 4)
Response: A footnote has been
added.
16.
Fee Tables – Annual Fund
Expense: Please include the following disclosure in the paragraph before the table, if applicable: “Expenses shown may
change over time and may be higher or lower in the future.”
Response: This statement has
been added.
17.
Purchase Payment Risk:
Please define Servicing Office or provide a cross reference.
Response: Contracts issued by LNY are serviced by our Home Office (Fort Wayne, Indiana). The Servicing Office location is noted at the top of page 1 of the
prospectus.
18.
i4LIFE® Advantage: Please define AIR.
Response: AIR is the acronym for “assumed investment return,” and it is defined in the bulleted listing under “Regular Income Payments during the Access
Period.”
19.
Custody Agreement: Please provide a Custody Agreement if the contract is offering variable options.
Response: This requirement is not applicable to separate accounts/unit investment trusts, as the insurance company retains custody of the assets.
20.
Please state the insurance company’s obligations are subject to its financial strength and claims paying ability, as required by
Items 6(a) and 8(c).
Response: We believe this
requirement is satisfied by our current language, which appears in the final paragraph under Charges and Other Deductions –
Obligations under the contracts that are funded by our general account (rather than the Variable Annuity Account)
include (1) the obligation to make lifetime or other benefit payments under Living Benefit Riders that exceed the Contract Value; (2) the obligation to pay Death Benefits that exceed the Contract Value; (3) the obligation to pay Annuity Payouts that
exceed the Contract Value. Payment of these benefits and obligations is subject to our claims-paying ability and financial strength. We are also responsible for providing for all of the administrative services necessary in connection with the
contracts (and bearing all of the associated expenses).
File No. 333-214111
Charges and Other Deductions: Please disclose or
direct us to the following three items regarding the advisory fee:
1)
The basis upon which the advisory fee is calculated.
2)
An explanation of how and when the fee will be deducted.
3)
A brief explanation of the deduction of advisory fee authorization agreement between the insurer and the contractowner including how the
contractowner may terminate the agreement.
Response: These contracts are issued as part of
fee-based financial plans, whereby an investment professional provides investment advice for a fee, and the contractowner pays the fee directly to the investment professional. Under these arrangements, the fee is set by the investment professional
and is covered in a separate agreement between the professional and the contractowner. LNY is not a party to these agreements, does not impose an advisory fee, and receives no portion of the advisory fee. This information is clearly discussed in the
prospectus under “Purchase of Contracts” and “Fees Associated with Fee-Based Financial Plans”.
File No. 333-181617
1.
Key Information Table – Charges for Early Withdrawals: Please
provide the missing words in the first sentence.
Response: The missing words
have been added.
2.
Death Benefits – Guarantee of Principal Death
Benefit: Please provide the missing word(s) in the second bullet.
Response: The missing words
have been added.
3.
Part C: The Bylaws and Certificate of Incorporation are missing from this filing. Please provide.
Response: The charter and
bylaws of LNY will be filed, respectively, as Exhibits (f)(1) and (f)(2) in the upcoming 485(b) filing.
We sincerely appreciate your attention to this filing, and your review and comments. Please call me at 860-466-1111 with any questions or additional comments.
Sincerely,
Carolyn Augur
Lincoln ChoicePlusSM Fusion Individual Variable Annuity Contracts
Lincoln New York Account N for Variable Annuities
For contracts issued on and after February 18 , 2025
December 31 , 2024
Home Office:
Lincoln Life & Annuity Company of New York
120 Madison Street, Suite 1310
Syracuse, NY 13202
www.LincolnFinancial.com
Servicing Office:
Lincoln Life & Annuity Company of New York
PO Box 2348
Fort Wayne, IN 46801-2348
1-888-868-2583
This prospectus describes an individual modified single premium deferred variable annuity contract issued by Lincoln Life
& Annuity Company of New York (Lincoln New York or Company). This Contract can be purchased as either a nonqualified annuity or qualified retirement annuity under Sections 408 (IRAs) and 408A (Roth IRAs) of the tax code. Generally, you do not pay federal income tax on the Contract's growth until it is paid out. You receive tax deferral for an IRA whether or not the funds are invested in an annuity contract. Further, if your Contract is a Roth IRA, you generally will not pay income tax on a distribution, provided certain conditions are met. Therefore, there should be reasons other than tax deferral for purchasing a qualified annuity contract.
The Contract is designed to accumulate Contract Value and to provide income over a certain period of time, or for life, subject to certain conditions. This Contract also offers a Death Benefit payable upon the death of the Contractowner or Annuitant. This prospectus is used by both new purchasers and current Contractowners. Certain benefits described in this prospectus are no longer available.
If you are a new investor in the Contract, you may cancel your Contract within ten days of receiving it without paying fees
or penalties. This free-look or cancellation period may be longer under certain scenarios. Upon cancellation, you will receive the greater of a full refund of the amount you paid with your application or your total Contract Value. You should review this prospectus and consult your registered representative for additional information about the specific cancellation terms that may apply.
The Contract described in this prospectus is only available in New York.
The minimum Purchase Payment for the Contract is $10,000. No Purchase Payments will be accepted after 90 days from the date the application is received by us.
We offer variable annuity contracts that have lower fees. You should carefully consider whether or not this Contract is the best product for you.
All Purchase Payments for benefits on a variable basis will be placed in Lincoln New York Account N for Variable Annuities (Variable Annuity Account [VAA]). You take all the investment risk on the Contract Value and the retirement income for amounts placed into one or more of the Contract’s variable options (“Subaccounts”), which, in turn, invest in corresponding underlying funds. If the Subaccounts you select make money, your Contract Value goes up; if they lose money, it goes down. How much it goes up or down depends on the performance of the Subaccounts you select. We do not guarantee
how any of the Subaccounts or their funds will perform. Also, neither the U.S. Government nor any federal agency insures or guarantees your
investment in the Contract. The contracts are not bank deposits and are not endorsed by any bank or government agency.
All prospectuses and other shareholder reports, will be made available on www.lfg.com/VAprospectus. This prospectus gives you information about the Contract that you should know before you decide to buy a Contract and make a Purchase Payment. You should also review the prospectus for the funds and keep all prospectuses for future reference.
The Securities and Exchange Commission (SEC) has not approved or disapproved these securities or determined
if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
Additional information about certain investment products, including variable annuities, has been prepared by the SEC’s staff and is available online at Investor.gov.
1
Table of Contents
Item
Page
Special Terms
3
Important Information
You Should Consider About the Lincoln ChoicePlusSM Fusion Variable Annuity Contract
5
Overview of the Contract
7
Fee Tables
9
Principal Risks
10
Investments of the
Variable Annuity Account
12
Charges and Other
Deductions
14
Premium Based Charge
15