| 摘要 |
For a variable insurance product, a method of delivering upfront payment of funds that would otherwise be received through periodic collection of fees includes paying an insurer's distribution costs from sub-account funds, rather than from fees that are charged at the policy level. Because financing that is received for a sub-account can be immediately recognized as income, these 12b-1 fees can be sold to a financing company for a lump sum payment. An insurer can therefore, immediately obtain funds for its distribution costs, rather than wait for funds to periodically be paid by policyholder fees.
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