CLEAR Forms Act

The CLEAR Forms Act requires the Securities and Exchange Commission (SEC) to create new or amended registration forms for certain non-variable insurance products, including contingent deferred annuities and registered index-linked life insurance. The bill defines key terms and sets deadlines for rulemaking, with a fallback provision if the SEC does not finalize rules on time.

Sec. 2, Registration forms for RILU, CDA, and other registered non-variable insurance contracts: This section adds a new section 6A to the Securities Act of 1933. It defines terms such as 'contingent deferred annuity,' 'registered index-linked life insurance,' and 'covered insurance contract.' The SEC must propose rules within 12 months and finalize them within 30 months to establish registration forms for these products. The forms must be designed to help purchasers make informed decisions, including investor testing for contingent deferred annuities. The SEC must limit disclosures to those in existing forms (sections 239.17b and 239.17c of title 17, Code of Federal Regulations) and cannot impede the Rule 12h-7 exemption. The SEC should also create a consistent regulatory framework for all registered insurance products. The section does not limit SEC authority beyond the specified disclosure limits or preempt state law.

Sec. 2(b), Treatment if rules not prepared and finalized in a timely manner: If the SEC does not finalize the required rules within 30 months, issuers may register registered index-linked life insurance or contingent deferred annuities using the existing forms (sections 239.17b and 239.17c). This fallback provision ends once the SEC finalizes the new rules.