'There is no duly signed board resolution approving the investment in single-pay variable life insurance
, being a new mode of investment.
"The audit team finds the above comments untenable considering that there is no duly signed Board Resolution approving the investment in single-pay variable life insurance
, being a new mode of investment," state auditors said.
Two chapters under the heading "special topics" address private placement variable life insurance
and asset allocation programs and funds of funds in variable insurance products.
VARIABLE LIFE INSURANCE
is similar to universal life insurance, except that the underlying cash values can be invested in an equity portfolio, typically a mutual fund or bonds.
Southeast Financial said the nearly $1.3 million was not used as a deposit but to purchase a variable annuity and a variable life insurance
plan, according to the complaint.
There are also a couple of other types of life insurance, including universal life insurance and variable life insurance
. Ask your independent financial adviser for more information on these.
Variable life insurance
uses sub-contracts that are invested to generate a guaranteed rate of return.
A variable life insurance
policy is a security, and the sale of such a product in the secondary market is a securities transaction subject to NASD rules.
The new rules would not apply to individual and group annuity contracts, credit life insurance, group life insurance, life insurance policies issued in connection with pension and welfare plans, and variable life insurance
An overview of term, whole life, universal, and variable life insurance
Variable life insurance
is suitable for younger, risk-tolerant investors because it includes a more volatile mix of mutual funds, bonds, and stock investments and does not offer a guaranteed return.
The company is the eighth-largest provider of personal lines insurance in the United States, and sells full lines of coverage for homeowners, automobile, valuable possessions, and personal liability, as well as a wide range of traditional and variable life insurance
and annuity products, through more than 370 local sales offices, two call centers, and through payroll deduction and direct billing to more than 8,500 participating companies, credit unions, and professional and alumni associations.