Variable Annuities as Investment Companies
Variable annuities offer a fund of securities to customers. As a result, they are considered investment companies, and the must register with the SEC. Variable annuities must also keep investors’ invested premiums in a separate account. This account must be separate from the insurance company’s fixed annuity and other insurance accounts. Securities can only be bought and sold out of this separate account. When the account directly invests in and manages securities,
