Delivery of the Fund Prospectus to Contract Owners Clause Samples
The "Delivery of the Fund Prospectus to Contract Owners" clause requires that contract owners receive the official prospectus for any investment fund associated with their contract. In practice, this means the issuer or administrator must provide the prospectus document—either in paper or electronic form—to each contract owner, typically at the time of purchase and whenever the prospectus is updated. This clause ensures that contract owners are fully informed about the fund’s objectives, risks, fees, and other essential details, thereby promoting transparency and helping owners make informed investment decisions.
Delivery of the Fund Prospectus to Contract Owners a. Except as provided below, the Company shall deliver (or arrange for delivery of) a Summary Prospectus for each Fund that a prospective Contract owner identifies on his or her application as an intended investment option under a Contract or to which a Contract owner currently allocates premium payments or transfers Contract value. The Company, in its sole discretion, reserves the right to deliver to Contract owners a Summary Prospectus for each Fund that has served as an investment option under a Contract issued by the Company. In addition, the Company, in its sole discretion, reserves the right to deliver the Statutory Prospectus in place of the Summary Prospectus. In such case, the Company will bear the expenses of printing and distribution. The Company shall deliver (or arrange for delivery of) such Summary or Statutory Prospectuses at the times required by applicable provisions of the 1933 Act and 1940 Act, the rules or regulations thereunder, and any applicable guidance received from the SEC or from the SEC Staff thereunder.
b. The Company may, in its sole discretion, bind together the Summary Prospectuses or Statutory Prospectuses for the Funds with Summary Prospectuses and Statutory Prospectuses for other investment options under the Contract and the Contract Prospectus(es) as long as such binding is done in compliance with Rule 498(c)(2) and any applicable guidance received from the SEC or from the SEC Staff thereunder.
c. The Company shall deliver all Summary Prospectuses and all Statutory Prospectuses in compliance with the Greater Prominence requirements of Rule 498(f)(2) and any applicable guidance received from the SEC or from the SEC Staff thereunder.
d. The Company shall be permitted, but not required, in its sole discretion, to post copies of Fund Documents on the Company’s Web site. The Company may create a hyperlink from the Company’s Web site to the top level page of the Fund Documents Web site. Company may not frame or otherwise obscure any Fund Document Web site content, branding or intellectual property information. Upon termination of the Agreement Company shall discontinue all links to Fund Document Web site. Notwithstanding the foregoing, the Trust shall be and remain solely responsible for ensuring that the Fund Documents, including the Summary Prospectuses for the Funds, comply with Rule 498 and any applicable guidance received from the SEC or from the SEC Staff thereunder.
e. The Trust shall maintain the Fund Documents Web Sit...