CLEAR Forms Act

This bill requires the Securities and Exchange Commission (SEC) to establish new or amended registration forms for certain non-variable insurance products. Specifically, it targets contingent deferred annuities (CDAs) , registered index-linked life insurance (RILU) , and other registered non-variable insurance contracts that are considered securities but are not issued by investment companies. The SEC is directed to propose these rules within 12 months and finalize them within 30 months of the bill's enactment. The new forms must be designed to ensure purchasers receive information necessary for informed decisions, taking into account factors like product complexity, investor sophistication, and disclosure length. The Commission must also conduct investor testing for CDAs and integrate the findings into the form design to enhance clarity and understanding. Furthermore, the bill limits the disclosures requested from insurance companies to align with existing SEC forms for similar products, ensuring consistency in financial reporting requirements. It also aims to create an overall regulatory and filing framework that is consistent with current practices for registered insurance products, facilitating a streamlined process for issuers. This includes provisions related to summary prospectuses, annual registration fees, and automatic effectiveness for certain amendments. Should the SEC fail to finalize the required rules within the 30-month timeframe, the bill provides a temporary measure allowing RILU and CDAs to be registered using existing SEC forms (specifically, sections 239.17b and 239.17c of title 17, Code of Federal Regulations). This interim provision would terminate once the SEC successfully finalizes its new rules.