0001193125-15-238619.txt : 20151026 0001193125-15-238619.hdr.sgml : 20151026 20150629134004 ACCESSION NUMBER: 0001193125-15-238619 CONFORMED SUBMISSION TYPE: CORRESP PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20150629 FILER: COMPANY DATA: COMPANY CONFORMED NAME: METLIFE INVESTORS USA SEPARATE ACCOUNT A CENTRAL INDEX KEY: 0000356475 IRS NUMBER: 060566090 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: CORRESP BUSINESS ADDRESS: STREET 1: METLIFE INSURANCE COMPANY USA STREET 2: 11225 NORTH COMMUNITY HOUSE ROAD CITY: CHARLOTTE STATE: NC ZIP: 28277 BUSINESS PHONE: 800-989-3752 MAIL ADDRESS: STREET 1: METLIFE INSURANCE COMPANY USA STREET 2: 11225 NORTH COMMUNITY HOUSE ROAD CITY: CHARLOTTE STATE: NC ZIP: 28277 FORMER COMPANY: FORMER CONFORMED NAME: METLIFE INVESTORS SEPARATE ACCOUNT A DATE OF NAME CHANGE: 20010314 FORMER COMPANY: FORMER CONFORMED NAME: SECURITY FIRST LIFE SEPARATE ACCOUNT A DATE OF NAME CHANGE: 19920703 CORRESP 1 filename1.txt Reed Smith LLP Riverfront Plaza - West Tower 901 East Byrd Street, Suite 1700 Richmond, VA 23219-4068 Tel +1 804 344 3400 Fax +1 804 344 3410 1301 K Street, N.W. Suite 1100 - East Tower Washington, D.C. 20005-3373 W. THOMAS CONNER +1 202 414 9200 Direct Phone: +1 202 414 9208 Fax +1 202 414 9299 Email: tconner@reedsmith.com reedsmith.com June 25, 2015 BY ELECTRONIC MAIL AND EDGAR CORRESPONDENCE SUBMISSION Sonny Oh Securities and Exchange Commission Division of Investment Management 100 F Street, NE Washington, DC 20549 RE: METLIFE INVESTORS USA SEPARATE ACCOUNT A SERIES O (OFFERED ON AND AFTER JULY __, 2015) INITIAL REGISTRATION STATEMENT FILED ON FORM N-4 ON APRIL 30, 2015 FILE NOS. 811-03365 AND 333-203748 Dear Mr. Oh: On behalf of MetLife Insurance Company USA ("MetLife USA") and its separate account, MetLife Investors USA Separate Account A (the "Registrant"), we are responding to the comments that the staff (the "staff") of the Securities and Exchange Commission (the "Commission") provided to us by correspondence dated June 25, 2015 with regard to the initial registration statement on Form N-4 (the "Registration Statement") relating to the Series O (offered on and after July __, 2015) variable annuity contracts (the "Contracts"). For ease of reference, each of the comments of the staff is set forth below, followed by MetLife USA's response. Unless noted otherwise, page references in MetLife USA's responses are to the marked courtesy copies of the prospectus and Statement of Additional Information ("SAI") provided to the staff in connection with the filing of the Registration Statement. To the extent our responses propose revised disclosure, we have attached hereto the corresponding pages from the revised prospectus. GENERAL ------- 1. Please disclose to the staff whether there are any types of guarantees or support agreements with any third parties. RESPONSE: There are no guarantees or support agreements with third parties. ABU DHABI o ATHENS o BEIJING o CENTURY CITY o CHICAGO o DUBAI o FRANKFURT o HONG KONG o HOUSTON o KAZAKHSTAN o LONDON o LOS ANGELES o MUNICH o NEW YORK o NORTHERN VIRGINIA PARIS o PHILADELPHIA o PITTSBURGH o PRINCETON o RICHMOND o SAN FRANCISCO o SHANGHAI o SILICON VALLEY o SINGAPORE o WASHINGTON, D.C. o WILMINGTON Sonny Oh [LOGO OF ReedSmith] June 25, 2015 Page 2 2. Please confirm that the date of the prospectus will be the same as or about the date of effectiveness. RESPONSE: We confirm that the date of the prospectus will be the same as or about the date of effectiveness. 3. Please confirm that the EDGAR series/class identifiers will appropriately be revised prior to effectiveness of the registration statement. RESPONSE: We confirm that the EDGAR series/class identifiers will be appropriately revised prior to effectiveness to reflect the date on which MetLife USA commences offering the Contracts. PROSPECTUS ---------- 4. GUARANTEED LIFETIME WITHDRAWAL BENEFIT (PAGE 38) In the paragraph preceding the Summary on page 39, please reconcile the first sentence with Note 2 to the Additional Optional Rider Charges tables on page 9. RESPONSE: The GLWB rider is now available in all states in which the Contracts will be offered. Accordingly, pursuant to the staff's comment, we have revised the first sentence in the paragraph preceding the Summary to delete the introductory clause, "[i]n states where approved," from that sentence. 5. DEATH BENEFIT (PAGE 49) In the second paragraph under "Upon Your Death," please clarify whether you are referring to versions of the death benefit riders. RESPONSE: Pursuant to the staff's comment, we have revised the first sentence of the second paragraph under "Upon Your Death" to read as follows: "There may be versions of each death benefit rider (i.e., the Principal Protection Death Benefit rider, the Annual Step-Up Death Benefit rider and the Additional Death Benefit -- Earnings Preservation Benefit rider) that vary by issue date and state availability." 6. FEDERAL INCOME TAX STATUS (PAGE 53) Please confirm the section is current and accurate. RESPONSE: We confirm that this section is current and accurate. Sonny Oh [LOGO OF ReedSmith] June 25, 2015 Page 3 STATEMENT OF ADDITIONAL INFORMATION ----------------------------------- 7. Based on the anticipated effective date for the filing, please confirm that all information required as of the most recent fiscal or calendar year has been updated appropriately, E.G., commission table on page 4. RESPONSE: We confirm that all information included in the SAI will meet the applicable requirements of Section 10(a)(3) of the Securities Act of 1933 or Regulation S-X, as the case may be, and the requirements of Form N-4. 8. FINANCIAL STATEMENTS, EXHIBITS, AND CERTAIN OTHER INFORMATION Any financial statements, exhibits, and any other required disclosure not included in this registration statement must be filed by pre-effective amendment to the registration statement. RESPONSE: We confirm that the financial statements, exhibits and any other required disclosure that have not been included in the Registration Statement will be included in, and filed by, a pre-effective amendment to the Registration Statement. 9. REPRESENTATIONS We urge all persons who are responsible for the accuracy and adequacy of the disclosure in the filings reviewed by the staff to be certain that they have provided all information investors require for an informed decision. Since the registrant is in possession of all facts relating to the registrant's disclosure, it is responsible for the accuracy and adequacy of the disclosures it has made. Notwithstanding our comments, in the event the registrant requests acceleration of the effective date of the pending registration statement, it should furnish a letter, at the time of such request, acknowledging that o should the Commission or the staff, acting pursuant to delegated authority, declare the filing effective, it does not foreclose the Commission from taking any action with respect to the filing; o the action of the Commission or the staff, acting pursuant to delegated authority, in declaring the filing effective, does not relieve the registrant from its full responsibility for the adequacy and accuracy of the disclosure in the filing; and o the registrant may not assert this action as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States. In addition, please be advised that the Division of Enforcement has access to all information you provide to the staff of the Division of Investment Management in connection with our review of your filing or in response to our comments on your filing. Sonny Oh [LOGO OF ReedSmith] June 25, 2015 Page 4 We will consider a written request for acceleration of the effective date of the registration statement as a confirmation of the fact that those requesting acceleration are aware of their respective responsibilities. RESPONSE: We will provide the requisite "Tandy representations" in subsequent correspondence requesting acceleration pursuant to Rule 461 under the Securities Act. * * * We hope that you will find these responses satisfactory. If you have questions or comments about this matter, please contact the undersigned at 202.414.9208 or Peggy Heminger at 412.288.7204. Very truly yours, /s/ W. Thomas Conner ------------------------- W. Thomas Conner WTC/PCH Attachment cc: Peggy C. Heminger CORRESP 2 filename2.txt are received from the appropriate regulator. We may also be required to provide additional information about you and your contract to government regulators. 7. LIVING BENEFIT GUARANTEED LIFETIME WITHDRAWAL BENEFIT If you want to invest your Account Value in the Investment Portfolio(s) during the Accumulation Phase, but also want to guarantee that you will receive lifetime income regardless of investment performance (subject to the conditions described in "Operation of the GLWB" below, including the condition that withdrawals before the Lifetime Withdrawal Age or withdrawals that are Excess Withdrawals will reduce the payments under the guarantee or, if such withdrawals reduce the Account Value to zero, eliminate the guarantee), we offer a rider for an additional charge, called the Guaranteed Lifetime Withdrawal Benefit (GLWB). The GLWB rider is designed to allow you to invest your Account Value in the Investment Portfolios, while guaranteeing that you will receive lifetime income regardless of investment performance, subject to the conditions described in "Operation of the GLWB" below. You may begin taking withdrawals under the GLWB rider immediately or at a later time; however, any withdrawals taken prior to the Lifetime Withdrawal Age will reduce the Benefit Base (see "Managing Your Withdrawals" below). You may purchase the GLWB rider if you are at least age 50 and not older than age 85 on the effective date of your contract. You may not select this rider together with the optional Annual Step-Up Death Benefit or the optional Earnings Preservation Benefit. Once selected, the GLWB rider may not be terminated except as stated below. SUMMARY OF THE GLWB THE FOLLOWING SECTION PROVIDES A SUMMARY OF HOW THE GLWB RIDER WORKS. A MORE DETAILED EXPLANATION OF THE OPERATION OF THE GLWB RIDER IS PROVIDED IN THE SECTION BELOW CALLED "OPERATION OF THE GLWB." The GLWB rider guarantees that you will receive lifetime income regardless of investment performance, subject to the conditions described in "Operation of the GLWB" below (including the condition that withdrawals before the Lifetime Withdrawal Age or withdrawals that are Excess Withdrawals will reduce the payments under the guarantee or, if such withdrawals reduce the Account Value to zero, eliminate the guarantee). THE GLWB RIDER DOES NOT GUARANTEE LIFETIME INCOME IF YOUR ACCOUNT VALUE IS REDUCED TO ZERO DUE TO A WITHDRAWAL PRIOR TO THE LIFETIME WITHDRAWAL AGE OR A WITHDRAWAL THAT IS AN EXCESS WITHDRAWAL (SEE "MANAGING YOUR WITHDRAWALS" BELOW). Under the GLWB rider, we calculate a Benefit Base (the "Benefit Base") that determines the maximum amount you may receive as withdrawals each Contract Year after the Lifetime Withdrawal Age (the "Annual Benefit Payment") without reducing your Benefit Base, and determines the amount of any lifetime payments if the Account Value is reduced to zero. The Benefit Base is multiplied by the applicable GLWB Withdrawal Rate while the Account Value is greater than zero to determine your Annual Benefit Payment. The Benefit Base is multiplied by the applicable GLWB Lifetime Guarantee Rate to determine your Annual Benefit Payment if your Account Value is reduced to zero and lifetime payments are to begin. The Benefit Base will be reduced for any withdrawal prior to the Lifetime Withdrawal Age or any Excess Withdrawal (and any subsequent withdrawals in the Contract Year that an Excess Withdrawal occurs). In any event, withdrawals under the GLWB rider will reduce your Account Value and death benefits. IT IS IMPORTANT TO RECOGNIZE THAT THE BENEFIT BASE IS NOT AVAILABLE TO BE TAKEN AS A LUMP SUM OR PAID AS A DEATH BENEFIT AND DOES NOT ESTABLISH OR GUARANTEE YOUR ACCOUNT VALUE OR A MINIMUM RETURN FOR ANY INVESTMENT PORTFOLIO. However, if you cancel the GLWB rider after a waiting period of at least ten (10) years (the "Guaranteed Principal Adjustment Eligibility Date") the Guaranteed Principal Adjustment will increase your Account Value to the Purchase Payments credited within the first 120 days of the date that we issue the contract reduced proportionately for any withdrawals, if greater than the Account Value at the time of the cancellation. (See "Cancellation and Guaranteed Principal Adjustment" below.) While the GLWB rider is in effect, we may reject subsequent Purchase Payments by sending advance written notice if any of the changes listed in the section "Investment Allocation Restrictions for Certain Riders - Investment Allocation and Other Purchase Payment Restrictions for the GLWB - Potential Restrictions on Subsequent Purchase Payments" occur. Restrictions on subsequent Purchase Payments will remain in effect until 40 8. PERFORMANCE We periodically advertise subaccount performance relating to the Investment Portfolios. We will calculate performance by determining the percentage change in the value of an Accumulation Unit by dividing the increase (decrease) for that unit by the value of the Accumulation Unit at the beginning of the period. This performance number reflects the deduction of the Separate Account product charges (including certain death benefit rider charges) and the Investment Portfolio expenses. It does not reflect the deduction of any applicable account fee, sales charge, withdrawal charge, or applicable optional rider charges. The deduction of these charges would reduce the percentage increase or make greater any percentage decrease. Any advertisement will also include total return figures which reflect the deduction of the Separate Account product charges (including certain death benefit rider charges), account fee, sales charges, withdrawal charges, applicable optional rider charges, and the Investment Portfolio expenses. We will show performance that reflects both the maximum sales charge (5.00% of the Purchase Payment) and the minimum sales charge (1.00% of the Purchase Payment). For periods starting prior to the date the contract was first offered, the performance will be based on the historical performance of the corresponding Investment Portfolios for the periods commencing from the date on which the particular Investment Portfolio was made available through the Separate Account. In addition, the performance for the Investment Portfolios may be shown for the period commencing from the inception date of the Investment Portfolios. These figures should not be interpreted to reflect actual historical performance of the Separate Account. We may, from time to time, include in our advertising and sales materials performance information for funds or investment accounts related to the Investment Portfolios and/or their investment advisers or subadvisers. Such related performance information also may reflect the deduction of certain contract charges. We may also include in our advertising and sales materials tax deferred compounding charts and other hypothetical illustrations, which may include comparisons of currently taxable and tax deferred investment programs, based on selected tax brackets. We may advertise the living benefit and death benefit riders using illustrations showing how the benefit works with historical performance of specific Investment Portfolios or with a hypothetical rate of return (which rate will not exceed 12%) or a combination of historical and hypothetical returns. These illustrations will reflect the deduction of all applicable charges including the portfolio expenses of the underlying Investment Portfolios. You should know that for any performance we illustrate, future performance will vary and results shown are not necessarily representative of future results. 9. DEATH BENEFIT UPON YOUR DEATH If you die during the Accumulation Phase, we will pay a death benefit to your Beneficiary (or Beneficiaries). The Principal Protection is the standard death benefit for your contract. At the time you purchase the contract, depending on availability in your state, you can select the optional Annual Step-Up Death Benefit rider. You can also select the Additional Death Benefit - Earnings Preservation Benefit, either individually or with the Annual Step-Up Death Benefit rider. If you have selected the optional Guaranteed Lifetime Withdrawal Benefit (GLWB) living benefit rider, you may not select the Annual Step-Up Death Benefit rider or the Earnings Preservation Benefit. You may select the Annual Step-Up Death Benefit rider or the Earnings Preservation Benefit if you are age 79 or younger at the effective date of your contract. There may be versions of each death benefit rider (i.e., the Principal Protection Death Benefit rider, the Annual Step-Up Death Benefit rider, and the Additional Death Benefit - Earnings Preservation Benefit rider) that vary by issue date and state availability. In addition, a version of a rider may become available (or unavailable) in different states at different times. Please check with your registered representative regarding which version(s) are available in your state. If you have already been issued a contract, please check your contract and riders for the specific provisions applicable to you. The death benefit is determined as of the end of the Business Day on which we receive both due proof of death and an election for the payment method. Until the Beneficiary (or the first Beneficiary if there are multiple Beneficiaries) submits the necessary documentation in Good Order, the Account Value attributable to his/her portion of the death benefit remains in the Investment Portfolios and is subject to investment risk. 50