[Federal Register Volume 59, Number 157 (Tuesday, August 16, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-19967]
[[Page Unknown]]
[Federal Register: August 16, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Rel. No. IC-20452; No. 812-9146]
Transamerica Occidental Life Insurance Company, et al.
August 9, 1994.
AGENCY: Securities and Exchange Commission (``Commission'' or ``SEC'').
ACTION: Notice of Application for an Order under the Investment Company
Act of 1940 (the ``1940 Act'').
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APPLICANTS: Transamerica Occidental Life Insurance Company
(``Transamerica''), First Transamerica Life Insurance Company (``First
Transamerica''), Separate Account VA-2NL of Transamerica Occidental
(``Separate Account VA-2NL''), Separate Account VA-2L of Transamerica
Occidental (``Separate Account VA-2L''), Separate Account VA-2NLNY of
First Transamerica (``Separate Account VA-2NLNY''), Separate Account
VA-2LNY of First Transamerica (``Separate Account VA-2LNY'')
(collectively, ``Separate Accounts''), and Transamerica Insurance
Securities Sales Corporation (``TISSC''), (collectively,
``Applicants'').
RELEVANT 1940 ACT SECTIONS: Order requested under Section 6(c) of the
1940 Act granting exemptions from the provisions of Sections
26(a)(2)(C) and 27(c)(2) of the 1940 Act.
SUMMARY OF APPLICATION: Applicants seek to amend an order under Section
6(c) of the Investment Company Act of 1940 (``Act'') exempting
Applicants from the provisions of Sections 26(a)(2)(C) and 27(c)(2) of
the Act to the extent necessary to permit the deduction of a mortality
and expense risk charge from the assets of the Separate Accounts in
connection with the issuance and sale of certain variable annuity
contracts (``Contracts''). Applicants propose that TISSC replace
Dreyfus Service Corporation as principal underwriter for the Contracts,
and that the amended order extend to TISSC, and to any National
Association of Securities Dealers, Inc. member broker-dealer that may
in the future serve as principal underwriter for the Contracts, the
same exemptions currently granted to Dreyfus.
FILLING DATE: The application was filed on August 5, 1994.
HEARING OR NOTIFICATION OF HEARING: An order granting the application
will be issued unless the Commission orders a hearing. Interested
persons may request a hearing by writing to the Commission's Secretary
and serving the Applicants with a copy of the request, personally or by
mail. Hearing requests should be received by the Commission by 5:30
p.m. on September 6, 1994, and should be accompanied by proof of
service on Applicants in the form of an affidavit or, for lawyers, a
certificate of service. Hearing requests should state the nature of the
writer's interest, the reason for the request, and the issues
contested. Persons may request notification of a hearing by writing to
the Commission's Secretary.
ADDRESSES: Secretary, SEC, 450 5th Street, NW., Washington, DC 20549.
Applicants, c/o James W. Dederer, Esq., Transamerica Occidental Life
Insurance Company, 1150 South Olive, Los Angeles, California 90015;
Frederick R. Bellamy, Esq., Sutherland, Asbill & Brennan, 1275
Pennsylvania Avenue, NW., Washington, DC 20004-2404.
FOR FURTHER INFORMATION CONTACT:
Yvonne Hunold, Senior Counsel, or Michael V. Wible, Special Counsel, at
(202) 942-0670, Office of Insurance Products (Division of Investment
Management).
SUPPLEMENTARY INFORMATION: Following is a summary of the application;
the complete application is available for a fee from the Commission's
Public Reference Branch.
Applicants' Representations
1. Transamerica and First Transamerica are each a stock life
insurance company. First Transamerica is a wholly-owned subsidiary of
Transamerica, which is a wholly-owned subsidiary of Transamerica
Insurance Corporation of California (``Transamerica-California'').
Transamerica-California is, in turn, a wholly-owned subsidiary of
Transamerica Corporation. Transamerica and First Transamerica are each
principally engaged in offering life insurance and annuity contracts.
Transamerica is licensed in Puerto Rico, Guam, the Virgin Islands, Hong
Kong, certain provinces of Canada, the District of Columbia, and in all
states except New York. First Transamerica is licensed to sell
insurance and annuities in New York and New Mexico.
2. Separate Accounts VA-2L and VA-2NL are separate accounts
established by Transamerica. Separate Accounts VA-2LNY and VA-2NLNY are
separate accounts established by First Transamerica. The Separate
Accounts have been registered with the Commission under the 1940 Act as
unit investment trusts.
3. TISSC, a wholly-owned subsidiary of Transamerica-California, is
registered under the Securities Exchange Act of 1934 as a broker-dealer
and is a member of the National Association of Securities Dealers, Inc.
4. By orders of the Commission,\1\ Applicants, other than TISSC,
and Dreyfus Service Corporation (``Dreyfus''), the primary principal
underwriter of the Contacts, were granted exemptive relief under
Section (6)(c) of the 1940 Act from the provisions of Sections 26(a)(2)
and 27(c)(2) to the extent necessary to permit the deduction of
mortality and expense risk charges from the assets of the Separate
Accounts in connection with the issuance of the Contracts. Dreyfus is a
wholly-owned subsidiary of Dreyfus Corporation.
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\1\Transamerica VA-2L, Inv. Co. Act Rel. Nos. 19195 (Dec. 30,
1992) (Order), and 19144 (Dec. 2, 1992) (Notice); *Transamerica VA-
2L, Inv. Co. Act Rel. Nos. 19750 (Sep. 29, 1993) (Order), and 19675
(Sep. 1, 1993) (Notice); Transamerica VA-1NL, Inv. Co. Act Rel. Nos.
19180 (Dec. 23, 1992) (Order), and 19119 (Nov. 24, 1992) (Notice);
First Transamerica VA-2LNY, Inv. Co. Act Rel. Nos. 19295 (Feb. 25,
1993) (Order), and 19246 (Jan. 29, 1993) (Notice); and First
Transamerica VA-2NLNY, Inv. Co. Act Rel. Nos. 19294 (Feb. 25, 1993)
(Order), and 19245 (Jan. 29, 1993) (collectively, ``Commission
Orders'').
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5. Applicants represent that Dreyfus Corporation will soon be
acquired by Mellon Bank. As a result of the proposed acquisition,
Dreyfus will become a bank affiliate and, consequently, cannot continue
to serve in the capacity of principal underwriter of the Contracts
issued through the Separate Accounts because bank affiliates may not
act as principal underwriters of investment company securities.
Accordingly, Applicants intend that TISSC replace Dreyfus as principal
underwriter of the Contracts.
6. Applicants request that the Commission amend the Commission
Orders to extend to TISSC, as well as to any NASD member broker-dealer
that may in the future serve as principal underwriter for the Contracts
(``Future Underwriters''), the same exemptions granted Dreyfus under
the Commission Orders.
Applicants' Legal Analysis
1. Applicants represent that all of the facts asserted and
representations made in the applications for the Commission Orders
remain true and accurate. Applicants specifically incorporate such acts
and representations by reference to such prior applications and,
further, represent that they each will comply with the conditions set
forth in such applications in connection with the exemptions requested.
2. Applicants request that the Commission issue an order under
Section 6(c) of the Act amending the Commission Orders to exempt TISSC
as well as any Future Underwriters from the provisions of Sections
26(a)(2) and 27(c)(2) to the extent necessary to permit the deduction
of mortality and expense risk charges from the assets of the Separate
Accounts as provided for in the Contracts.
Conclusion
For the reasons set forth above in the applications requesting the
foregoing orders, Applicants represent that the exemptions requested
are necessary and appropriate in the public interest and consistent
with the protection of investors and the purposes fairly intended by
the policy and provisions of the 1940 Act.
For the Commission, by the Division of Investment Management,
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-19967 Filed 8-15-94; 8:45 am]
BILLING CODE 8010-01-M