[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