Primerica, Inc. (Primerica) provides financial products and services to middle-income households in the United States and Canada with life insurance-licensed sales representatives. These independent licensed representatives (independent sales representatives or independent sales force) assist the company’s clients in meeting their needs for term life insurance, which it underwrites, and mutual funds, annuities, managed investments, and other financial products, which it distributes primarily on...
Primerica, Inc. (Primerica) provides financial products and services to middle-income households in the United States and Canada with life insurance-licensed sales representatives. These independent licensed representatives (independent sales representatives or independent sales force) assist the company’s clients in meeting their needs for term life insurance, which it underwrites, and mutual funds, annuities, managed investments, and other financial products, which it distributes primarily on behalf of third parties. The company insured over 5.5 million lives and had approximately 3.0 million client investment accounts as of December 31, 2024. The company’s business model uniquely positions it to reach underserved middle-income consumers in a cost-effective manner and has proven itself in both favorable and challenging economic environments.
The company’s distribution model is designed to:
Address the company’s clients’ financial needs. Independent sales representatives use its proprietary Financial Needs Analysis tool (FNA) and an educational approach to demonstrate how its product offerings can provide financial protection and help its clients save for retirement and other needs, and manage their debt. Typically, the company’s clients are the friends, family members and personal acquaintances of the independent sales representatives. Meetings are generally held in informal, face-to-face settings either in person or through remote communication tools, usually while clients are in their homes.
Provide a Business Opportunity: The company provides an entrepreneurial business opportunity for individuals to distribute financial products. Low entry fees, as well as the ability to select their own schedules and time commitments allow independent sales representatives to supplement their income by starting their own businesses without leaving their current jobs. The company’s unique compensation structure, technology, sales support and back-office processing are designed to enable independent sales representatives to successfully grow their businesses.
The company intends to leverage the independent sales force to meet such client needs, which will drive long-term value for all of its stakeholders. The company’s strategy has been organized across four primary areas maximizing independent sales force growth, leadership and productivity; broadening and strengthening its protection product portfolio, including term life insurance and third-party products; becoming the middle-income market’s provider of choice for retirement and investment products; and developing powerful digital capabilities that deepen its client relationships and extend its reach in the market.
Looking forward to 2025 and beyond, the company updated its corporate strategic plan to include the following growth pillars: understand and solve the financial challenges faced by current and prospective clients; enable leaders in the independent sales force to grow their teams and build new leaders, expanding its distribution capabilities across business lines; expand representative and client digital experiences to create connected conversations; deepen its talent pool to ensure its success, now and in the future; and proactively ensure the company's image accurately reflects who it is.
On September 30, 2024, the Company abandoned its ownership in e-TeleQuote Insurance, Inc. and subsidiaries (collectively, e-TeleQuote), a marketer of Medicare-related insurance products underwritten by third-party health insurance carriers to eligible Medicare beneficiaries.
Corporate Structure
The company conducts its core business activities in the United States through three principal entities, all of which are direct or indirect wholly owned subsidiaries of the Parent Company: Primerica Financial Services, LLC (PFS), its general agency and marketing company; Primerica Life Insurance Company (Primerica Life), its principal life insurance underwriting company; and PFS Investments Inc. (PFS Investments), its principal investment and savings products company, broker-dealer and registered investment advisor.
Primerica Life is domiciled in Tennessee, and its wholly owned subsidiary, National Benefit Life Insurance Company (NBLIC), is a New York-domiciled life insurance underwriting company. The company conducts its core business activities in Canada through three principal entities, all of which are indirect wholly owned subsidiaries of the Parent Company: Primerica Life Insurance Company of Canada (Primerica Life Canada), its Canadian life insurance underwriting company; PFSL Investments Canada Ltd. (PFSL Investments Canada), its Canadian licensed mutual fund dealer; and PFSL Fund Management Ltd. (PFSL Fund Management), its Canadian investment funds manager.
Clients
The company’s clients are generally middle-income consumers, which it defines as households with $30,000 to $130,000 of annual income.
Distribution Model
The company’s distribution model is a modified traditional insurance agency model designed to reach and serve middle-income consumers efficiently through the independent sales force. The company has developed an innovative system for compensating the independent sales force that is contingent upon product sales. The company advances to independent sales representatives a significant portion of their insurance commissions, which are subject to chargebacks, upon their submission of an insurance application and the first month’s premium payment.
Product Offerings
Reflecting the company’s philosophy of helping middle-income clients with their financial services needs and ensuring compatibility with its distribution model, its product offerings generally meet the following criteria:
Consistent with sound individual finance principles: Products must be consistent with good personal finance principles for middle-income consumers, such as financial protection, encouraging long-term savings and reducing debt.
Designed to support multiple client goals: Products are designed to address and support a broad range of financial goals rather than compete with or cannibalize each other. For example, term life insurance does not compete with mutual funds because term life insurance has no cash value or investment element.
Ongoing needs based: Products are generally designed to meet the ongoing financial needs of many middle-income consumers. This long-term approach bolsters the company’s relationship with its clients by allowing us to continue to serve them as their financial needs evolve.
The company uses three operating segments to organize, evaluate and manage its business: Term Life Insurance; Investment and Savings Products; and Corporate and Other Distributed Products.
Term Life Insurance
Through its three life insurance subsidiaries – Primerica Life, NBLIC and Primerica Life Canada – the company offers term life insurance to clients in the United States, its territories, and Canada. The company provides individual term life insurance in the United States.
The company designs its term life insurance products to be easily understood by, and meet the needs of, its clients. Clients purchasing the company’s term life insurance products generally seek stable, longer-term income protection products for themselves and their families. In response to this demand, the company offers term life insurance products with initial level-premium coverage periods that range from 10 to 35 years and a wide range of coverage face amounts. Policies remain in-force until expiration of the coverage period or until the policyholder ceases to make premium payments and terminates the policy. The company’s in-force term life insurance policies have level premiums for the stated term period. As such, the policyholder pays the same amount each year. After the initial policy term, the policyholder has the option to continue coverage by renewing or exchanging their contract. Both options result in higher premiums due to the policyholder’s more advanced age.
In October 2022, the company introduced its new generation of life insurance products in all jurisdictions except New York where it continues to sell its legacy term life insurance products. The Primerica PowerTerm (PowerTerm) product is the company’s rapid issue term life product that provides for face amounts of up to $300,000 (local currency). PowerTerm allows an independent sales representative to submit an application via TurboApps, during which the company collects information compliant with the Fair Credit Reporting Act (FCRA) from external data sources to inform the underwriting process. The company uses this data and the client’s responses to application questions to determine any additional underwriting requirements. Results of these processes are reported in real time to its underwriting system, which then determines whether or not it can rapidly issue a policy.
The company also offers its Primerica PrecisionTerm (PrecisionTerm) product, which is its traditionally underwritten term insurance product for face amounts in excess of $150,000 (local currency). PrecisionTerm allows an independent sales representative to submit an application via TurboApps. The company then collects information from external data sources that are traditional in nature, excluding credit scores.
Claims Management: The company’s insurance subsidiaries processed over 17,500 life insurance benefit claims in 2024 on policies underwritten by it and sold by independent sales representatives. Claims fall into three categories: death, waiver of premium (applicable to disabled policyholders who purchased this benefit for which the company agrees to waive life insurance premiums during a qualifying disability), or terminal illness.
Reinsurance: The company uses reinsurance primarily to reduce the volatility risk with respect to mortality. The company pays premiums to each reinsurer based on rates in the applicable agreement.
The company generally reinsures between 80% and 90% of the mortality risk for all term life insurance policies, excluding coverage under certain riders. The company reinsures substandard cases in limited circumstances based on the extensive experience some of its reinsurers have with substandard cases. A substandard case has a level of risk that is acceptable to it, but at higher premium rates than a standard case because of the health, habits or occupation of the applicant.
Investment and Savings Products
The company’s product offerings include saving and investment vehicles that seek to meet the needs of clients in all stages of life.
Through PFS, PFS Investments, Primerica Life Canada, PFSL Investments Canada, and licensed independent sales representatives, the company distributes and sells to its clients a variety of investment products: mutual funds; managed investments; variable, index-linked, fixed and fixed indexed annuities; and segregated funds. As of December 31, 2024, approximately 25,493 independent sales representatives were licensed to distribute mutual funds in the United States (including Puerto Rico) and Canada. As of December 31, 2024, approximately 13,524 independent sales representatives were licensed and appointed to distribute annuities in the United States and approximately 10,506 independent sales representatives were licensed to sell segregated funds in Canada.
Mutual Funds: In the United States, licensed independent sales representatives distribute mutual funds primarily from selected asset management firms that are on the company’s proprietary platform. The selected firms have diversified product offerings, including domestic and international equity, fixed-income and money market funds. Each firm continually evaluates its fund offerings and adds new funds on a regular basis. Additionally, their product offerings reflect diversified asset classes and varied investment styles.
During 2024, Franklin Templeton, Invesco, American Funds and Fidelity collectively accounted for approximately 98% of the company’s mutual fund sales in the United States. Franklin Templeton and Invesco each have large wholesaling teams that support the independent sales force in distributing their mutual fund products. The company’s selling agreements with these firms all have indefinite terms and provide for termination at will.
A wholly owned indirect subsidiary of the Parent Company and affiliate of PFS Investments, Primerica Shareholder Services, Inc. (PSS), provides transfer agent recordkeeping services to investors who purchase shares of mutual funds offered by certain of the company’s fund families through PFS Investments. In exchange for these services, PSS receives recordkeeping and account maintenance fees from the applicable fund company. PSS has retained BNY Mellon Asset Servicing to perform the necessary transfer agent recordkeeping services for these accounts on its proprietary SuRPAS system. PFS Investments serves as the Internal Revenue Service (IRS) approved non-bank custodian for customers that open individual retirement accounts (IRAs) (or certain other retirement accounts) with PFS Investments and invest in shares of mutual funds offered by certain of the company’s fund families. For these services, PFS Investments receives an annual custodian fee.
As a result of Canadian regulatory changes, in July 2022 PFSL Investments Canada’s services became focused on acting as the exclusive principal distributor for two families of mutual funds (the PD Funds) that are managed by well-established, unrelated investment fund managers. The PD Funds are: the AGF Platform Funds, which consist of a range of mutual funds managed by AGF Investments Inc. (AGF); and the Mackenzie FuturePath Funds, which consist of a range of mutual funds managed by Mackenzie Financial Corporation. PFSL Investments Canada has an exclusive right to distribute the PD Funds and, as a principal distributor, it markets the PD Funds through its representatives. PFSL Investments Canada representatives no longer recommend other mutual funds (the Legacy Canada Mutual Funds) that were previously available for purchase through PFSL Investments Canada. Like the company’s U.S. fund family, the PD Funds asset management partners it has chosen in Canada have a diversified offering of equity, fixed-income and money market funds, including domestic and international funds with a variety of investment styles.
The company’s Concert Series funds consist of six different asset allocation funds and a money market fund with varying investment objectives. Each Concert Series fund is a fund of funds that allocates fund assets among equity, income and money market mutual funds of AGF. The asset allocation within each Concert™ Series fund is determined on an advisory contract basis by an independent portfolio adviser.
During the year ended December 31, 2024, average client assets held in individual retirement accounts in the United States and Canada accounted for an estimated 74% and 64%, respectively, of total average client account assets. The company’s high concentration of retirement plan accounts and its systematic savings philosophy are beneficial to it as these accounts tend to have lower redemption rates than the industry and, therefore, generate more recurring asset-based revenues.
In the United States, the company also offers Employer Sponsored Retirement Plans (ESRP), such as 401(k) plans, primarily to small and medium-sized businesses. The ESRPs the company distributes are offered by a limited number of third-party providers, including American Funds Distributors, Inc., Equitable Distributors, LLC and VOYA Financial, Inc., which together account for most of its ESRP business. In addition, the company distributes 457(b) plans to governmental entities. The company’s licensed representatives generally provide educational and administrative services with respect to ESRPs, which include helping its ESRP clients understand the benefits of offering a tax-deferred retirement plan and assisting their employees to realize the need to save for retirement and the benefits of doing so in an ESRP.
Managed Investments. PFS Investments (dba Primerica Advisors) is a registered investment advisor in the United States, and it offers a managed investments program, Primerica Advisors Lifetime Investment Program (the Lifetime Investment Program), which the company launched in 2017. The Lifetime Investment Program is a robust advisory offering designed for clients who have at least $25,000 of investable assets. It provides the company customers access to investment models designed and managed by several unaffiliated investment advisers. PFS Investments, as sponsor and portfolio manager of the program, evaluates models for inclusion in the program and conducts ongoing due diligence of the models and unaffiliated investment advisers made available through the program. As of December 31, 2024, the company used 12 unaffiliated investment advisers. Primerica Brokerage Services, Inc. (PBSI), a wholly owned affiliate of Primerica, is the introducing broker-dealer for customer accounts managed through the Lifetime Investment Program. Pershing LLC (Pershing), an unaffiliated clearing firm, provides custody, trade execution, clearing, settlement and related services through a fully disclosed clearing agreement with PBSI.
Variable Annuities. U.S. securities licensed independent sales representatives also distribute variable annuities issued by American General Life Insurance Company and its affiliates (Corebridge), Equitable Financial Life Insurance Company (Equitable Life), Lincoln National Life Insurance Company and its affiliates (Lincoln National) and Brighthouse Life Insurance Company (Brighthouse Life). Variable annuities are insurance products that enable the company’s clients to invest in accounts with attributes similar to mutual funds, but also have benefits not found in mutual funds, including death benefits that protect beneficiaries from losses due to a market downturn and income benefits that guarantee future income payments for the life of the policyholder(s). The company also offers index-linked annuities issued by Equitable Life, Brighthouse Life and Lincoln National. Index-linked annuities are insurance contracts that provide investors with potential growth, subject to a cap, and partial downside protection against losses. Gains and losses are measured over a fixed period, typically three to six years, based on the performance of a securities index. Although linked to an index, an investment in these contracts does not involve ownership of any underlying portfolio securities by the client. Each of these companies bears the insurance risk on its variable annuities and index-linked variable annuities that it distributes.
Fixed Indexed Annuities: The company offers fixed indexed annuity products in the U.S. through Corebridge, Lincoln National, Trans-Oceanic Life Insurance Company (Puerto Rico) (Trans-Oceanic Life), and Universal Life Insurance Company (Puerto Rico) (Universal Life). These products combine safety of principal and guaranteed rates of return with additional investment options tied to equity market indices that allow for returns that move based on the performance of an index
Fixed Annuities: In Puerto Rico, the company offers two annuity products: a fixed annuity and a fixed bonus annuity underwritten by Corebridge, Trans-Oceanic Life, and Universal Life. These products provide guarantees against loss with several income options.
Segregated Funds: In Canada, the company has underwritten segregated fund products, branded as its Common Sense FundsTM, that have some of the characteristics of its variable annuity products distributed in the United States. The company’s Common Sense Funds are underwritten by Primerica Life Canada and offers its clients the ability to participate in a diversified managed investments program that can be opened for as little as $25.
There are three fund products within the company’s segregated funds: the Asset Builder Funds, the Strategic Retirement Income Fund (SRIF), and a money market fund known as the Cash Management Fund. The investment objective of Asset Builder Funds is long-term capital appreciation combined with some guarantee of principal. Unlike mutual funds, the company’s Asset Builder Funds product guarantees clients at least 75% of their net contributions (net of withdrawals) at the earlier of the date of their death or at the Asset Builder Funds’ maturity date, which is selected by the client. The portfolio consists of both equities and fixed-income securities with the equity component consisting of a pool of primarily large cap Canadian and U.S. equities and the fixed-income component consisting of Canadian federal government zero coupon treasuries and government-backed floating rate notes. The portion of the Asset Builder Funds’ portfolio allocated to zero coupon treasuries are held in sufficient quantity to satisfy the guarantees payable at the maturity date of each Asset Builder Fund. As a result, the company’s potential loss exposure is very low as it comes from the guarantees payable upon the death of the client prior to the maturity date.
The Cash Management Fund invests in government guaranteed short-term bonds and short-term commercial and bank papers, with the principal investment objective being the provision of interest income while maintaining liquidity and preserving capital.
The company recently reached an agreement with The Canada Life Assurance Company (Canada Life), a third-party insurance company, to distribute segregated fund contracts underwritten by Canada Life as its primary new segregated fund product offering. In early 2025, the company began the process of rolling out its distribution of these segregated fund contracts.
Investment and Savings Products Revenue: In the United States, the company earns revenue from its Investment and Savings Products business in three ways: up front commissions and payments earned on the sale of such products; trailing fees and payments earned based upon client asset values; and account-based revenue. On the sale of mutual funds (not including managed investments) and annuities, the company earns a dealer re-allowance or commission on new purchases as well as trail commissions on the assets held in its clients’ accounts. The company also receives marketing and distribution fees from most of its mutual fund and annuity providers. These payments are typically a percentage of sales or a percentage of the clients’ total asset values, or a combination of both. For investments into the Lifetime Investment Program, the company receives an asset-based fee as compensation for the investment advisory and other administrative services it provides.
As the IRS-approved non-bank custodian for certain funds noted above, PFS Investments receives annual fees on a per-account basis for as long as it services the account. As explained above, PSS receives transfer agent recordkeeping fees for the services it provides to the fund families noted above in Mutual Funds section.
Because the total amount of these fees fluctuates with the number of such accounts and positions within those accounts, the opening or closing of accounts has a direct impact on its revenues. From time to time, the fund companies for which the company provides these services request that accounts or positions with small balances be closed.
In Canada, the company earns revenue from the distribution of PD Funds primarily in the form of fees paid based upon client asset values, which include dealer services fees that are paid monthly to it by clients and principal distributor fees which are paid to it on a periodic basis by the PD Fund managers. PFSL Investments Canada also earns revenue from sales-based up-front commissions on PD Funds if such commissions are negotiated between investors and PFSL Investments Canada independent sales representatives.
Other Distributed Products
In the United States, the company distributes other products, including mortgage loans through mortgage-licensed loan originators, prepaid legal services, auto and homeowners’ insurance referrals and home automation solutions. In Canada, the company offers mortgage loan referrals, auto and homeowners’ insurance referrals and insurance offerings for small businesses. While some of these products are Primerica-branded, all of them are underwritten or otherwise provided by a third party.
The company has a contractual arrangement with Rocket Mortgage, LLC (Rocket Mortgage), a mortgage lender, whereby Primerica Mortgage, LLC (Primerica Mortgage), a state-licensed mortgage broker, offers refinance mortgages and purchase-money mortgages through its mortgage loan originator licensed representatives. The company also has a program with Spring EQ LLC, a mortgage lender, whereby Primerica Mortgage offers second mortgages and home equity lines of credit through its mortgage loan originator licensed representatives. In 2024, the company continued to expand its mortgage program into new states.
The company receives compensation from the mortgage lenders for each closed loan based on a fixed percentage of the loan amount (subject to regulatory maximums) for mortgage brokering services provided and pay compensation to the representatives for services rendered.
The company offers its U.S. and Canadian clients a Primerica-branded prepaid legal services program on a subscription basis that is underwritten and provided by Pre-Paid Legal Services, Inc. The prepaid legal services program offers a network of attorneys in all states, and certain provinces and territories, to assist subscribers with legal matters such as drafting wills, living wills and powers of attorney, trial defense and motor vehicle-related matters. The company receives commissions based on sales and renewals of these subscriptions.
The company has a contractual arrangement with Answer Financial, Inc. (Answer Financial), an independent insurance agency, whereby U.S. independent sales representatives refer clients to Answer Financial to receive multiple, competitive auto and homeowners’ insurance quotes. Answer Financial’s comparative quote process allows clients to easily identify the underwriter that is most competitively priced for their type of risk. The company receives commissions based on completed auto and homeowners’ placement of insurance and policy renewals and pay independent sales representatives a flat referral fee for each completed application and policy renewal.
The company has a contractual arrangement with Vivint, Inc. (Vivint), a company that offers homeowners in the U.S. a comprehensive suite of products and services to protect and remotely control, monitor and manage their homes using any Internet-connected smart device. The company receives commissions based on referrals that result in a subscription to Vivint’s home services and pay independent sales representatives a referral fee for each such subscription.
In the Canadian provinces of Alberta, Ontario and British Columbia (with respect to homeowners’ insurance only), the company has an arrangement with SurexDirect.com Ltd. (Surex Direct), an independent insurance agency, whereby independent sales representatives refer clients to Surex Direct to receive multiple, competitive auto, commercial, and homeowners’ insurance quotes. Surex Direct’s comparative quote process allows clients to easily identify the underwriter that is most competitively priced for their type of risk. The company receives referrals based on completed auto, commercial, and homeowners’ placement of insurance and policy renewals and pay independent sales representatives a flat referral fee for each completed application and policy renewal.
In Canada, the company has a referral program for mortgage loan products offered by third-party lenders Rocket Mortgage Canada ULC and 8Twelve Mortgage Corp. Due to regulatory requirements, independent sales representatives in Canada only refer clients to the lender and are not involved in the loan application and closing process. The company receives referral fees based on the funded loan amount and, in turn, pay a commission to independent sales representatives.
In Canada, the company offers insurance products, including supplemental medical and dental, accidental death, and disability, to small businesses. These insurance products are underwritten and provided by The Edge Benefits Inc. and its affiliates. The company receives a commission based on sales and renewals of these policies.
Regulation
Primerica Life, as a Tennessee-domiciled insurer, is regulated by the Tennessee Department of Commerce and Insurance and is licensed to transact business in the United States (except New York), and most U.S. territories. NBLIC, as a New York-domiciled life insurance underwriting company and a wholly owned subsidiary of Primerica Life, is regulated by the New York State Department of Financial Services and is licensed to transact business in all 50 U.S. states, the District of Columbia and the U.S. Virgin Islands.
The company’s U.S. insurance subsidiaries are required to file certain annual, quarterly and periodic reports with the supervisory agencies in the jurisdictions in which they do business, and their business and accounts are subject to examination by such agencies at any time. These examinations generally are conducted under National Association of Insurance Commissioners (NAIC) guidelines. Under the rules of these jurisdictions, insurance companies are examined periodically (generally every three to five years) by one or more of the supervisory agencies on behalf of the states in which they do business. The company’s most recent examinations of the financial condition and affairs of Primerica Life and NBLIC, as well as Vidalia Re, Inc. (Vidalia Re), a special purpose financial captive insurance company and wholly owned subsidiary of Primerica Life, performed by the respective domiciliary state insurance departments as of December 31, 2019, were completed during 2021 with no material findings or recommendations noted.
Primerica Life Canada is federally incorporated and provincially licensed and is required to file periodic reports with Canadian regulatory agencies. It transacts business in all Canadian provinces and territories. Primerica Life Canada is regulated federally by the Office of the Superintendent of Financial Institutions Canada (OSFI) and provincially by the Superintendents of Insurance for each province and territory. Canadian federal and provincial insurance laws regulate all aspects of the company’s Canadian insurance business. OSFI regulates insurers’ corporate governance, financial and prudential oversight, and regulatory compliance, while provincial and territorial regulators oversee insurers’ market conduct practices and related compliance.
Primerica Life Canada files quarterly and annual financial statements prepared in accordance with International Financial Reporting Standards (IFRS) and other locally accepted standards with OSFI in compliance with legal and regulatory requirements. OSFI conducts periodic detailed examinations of insurers’ business and financial practices, including the control environment, internal and external auditing and capital adequacy, surpluses and related testing, legislative compliance and appointed actuary requirements. These examinations also address regulatory compliance with anti-money laundering practices, outsourcing, related-party transactions, privacy and corporate governance. Provincial regulators conduct periodic market conduct examinations of insurers doing business in their jurisdictions.
In addition to federal and provincial oversight, Primerica Life Canada is also subject to the guidelines set out by the Canadian Life and Health Insurance Association (CLHIA). CLHIA is an industry association that works closely with federal and provincial regulators to establish market conduct guidelines and sound business and financial practices addressing matters, such as independent sales representative suitability and screening, insurance illustrations and partially guaranteed savings products.
The laws and regulations governing the company’s U.S. and Canadian insurance businesses include numerous provisions governing the marketplace activities of insurers, including policy filings, payment of insurance commissions, disclosures, advertising, product replacement, sales and underwriting practices and complaints and claims handling. The state insurance regulatory authorities in the United States and the federal and provincial regulators in Canada generally enforce these provisions through periodic market conduct examinations.
PFS Investments is registered with, and regulated by, FINRA and the Securities and Exchange Commission (SEC) as a broker-dealer. PFS Investments operates as an introducing broker-dealer, which does not hold client accounts. As an investment adviser, PFS Investments is registered with and regulated by the SEC. PFS Investments also is subject to regulation by the Department of Labor (DOL) with respect to certain retirement plans, and by state securities agencies.
PFS Investments is registered in all 50 U.S. states and certain territories. All aspects of PFS Investments’ business are regulated, including sales methods and charges, trade practices, the use and safeguarding of customer securities, capital structure, recordkeeping, data protection, conduct and supervision of registered representatives.
PFS Investments is required to file quarterly reports as well as annual audited financial statements with the SEC pursuant to Section 17 of the Securities Exchange Act of 1934, as amended (the Exchange Act), and Rule 17a-5 thereunder. As part of filing these reports, PFS Investments is subject to minimum net capital requirements, as mandated by Rule 15c3-1 of the Exchange Act.
PBSI is registered with, and regulated by, FINRA and the SEC, and is registered in all 50 U.S. states and certain territories. PBSI operates as the introducing broker-dealer for the accounts managed through the Lifetime Investment Program and does not hold customer accounts. PBSI introduces all accounts to Pershing, an unaffiliated clearing firm that provides order execution, custody, clearing, settlement and related services to PBSI’s customers. PBSI is required to file quarterly reports as well as annual audited financial statements with the SEC pursuant to Section 17 of the Exchange Act, and Rule 17a-5 thereunder. PBSI is subject to minimum net capital requirements as mandated by Rule 15c3-1 of the Exchange Act.
PSS is registered with the SEC as a transfer agent and, accordingly, is subject to SEC rules and examinations. Acting in this capacity, PSS and third-party vendors employed by PSS are responsible for certain client investment account shareholder services.
PFSL Investments Canada is a mutual fund dealer registered with and regulated by the Canadian Investment Regulatory Organization (CIRO), the national self-regulatory organization that overseas all investment dealers, mutual fund dealers and trading activity on Canada’s debt and equity marketplaces. PFSL Investments Canada is also registered with provincial and territorial securities commissions throughout Canada (collectively referred to as the Canadian Securities Administrators (CSA)). As a registered mutual fund dealer, PFSL Investments Canada performs the suitability review of mutual fund investment recommendations, and like the company’s U.S. broker-dealers, it does not hold client accounts. PFSL Investments Canada is subject to the rules and regulations established by the CSA for the sale of securities, which include standards of conduct for the firm and its independent sales representatives.
PFSL Investments Canada is required to file monthly and annual financial statements and reports with CIRO that are prepared to comply with the prescribed CIRO reporting requirements. CIRO has established a risk adjusted capital standard for mutual fund dealers. Its formula is designed to provide advance warning of a member encountering difficulties. If a mutual fund dealer falls below specified levels, then restrictions would apply until rectified, including not being able to act on certain matters without prior written consent from CIRO.
PFSL Fund Management in Canada is registered as an Investment Fund Manager in connection with the company’s Concert Series mutual funds and is regulated by provincial securities commissions.
PFSL Fund Management is required to file quarterly and annual financial statements with the Ontario Securities Commission (OSC) prepared to meet the requirements of National Instrument 31-103, Registration Requirements, Exemptions and Ongoing Registrant Obligations, based on the financial reporting framework specified in National Instrument 52-107, Acceptable Accounting Principles and Auditing Standards. PFSL Fund Management is required to maintain a minimum level of capital and file its quarterly and annual calculation of excess working capital with the OSC. As an Investment Fund Manager, PFSL Fund Management is required to file periodic reports with provincial and territorial securities commissions throughout Canada for its Concert™ Series mutual funds. Such reports include semi-annual and annual financial statements prepared in accordance with IFRS.
As the segregated funds are separate accounts of Primerica Life Canada, the segregated funds are also regulated by OSFI and included as part of the quarterly and annual financial statement filings for Primerica Life Canada. In addition, the segregated funds are also subject to the guidelines set out by the CLHIA.
In addition, the company’s mortgage brokerage business is subject to various other federal laws, including the Truth In Lending Act and its implementing regulation, Regulation Z, the Equal Credit Opportunity Act and its implementing regulation, Regulation B, the Fair Housing Act and the Home Ownership Equity Protection Act. The company is also subject to the Real Estate Settlement Procedures Act and its implementing regulation, Regulation X, which requires timely disclosures related to the nature and costs of real estate settlement amounts and limits those costs and compensation to amounts reasonably related to the services performed. The company is also subject to the Dodd-Frank Wall Street Reform and Consumer Protection Act and any implementing regulations.
In Canada, the company’s loan activities are more limited and the independent sales representatives only provide mortgage loan referrals to Rocket Mortgage Canada ULC and 8Twelve Mortgage Corp. The independent sales representatives are not required to obtain mortgage loan licensure from any regulatory entity to make these referrals.
The Gramm-Leach-Bliley Act (GLBA) regulates the use and disclosure of certain data that the company collects from consumers, and it requires it to provide consumers with notice regarding how their nonpublic personal health and financial information is used and the opportunity to opt out of certain disclosures before sharing such information with third parties. GLBA generally requires safeguards for the protection of personal information. The company is also subject to privacy laws under the jurisdiction of federal and provincial privacy commissioners and the consumer complaints provisions of federal insurance laws under the mandate of the FCAC, which requires insurers to belong to a complaints ombud-service and file a copy of their complaints handling policy with the FCAC.
History
Primerica, Inc. was founded in 1927. The company was incorporated in the United States as a Delaware corporation in 2009.
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