Why do Variable insurance policies not accept 3rd party checks?
A variable type insurance policy use stocks and bonds, via mutual funds, to manage the assets in the cash account maintained at the insurance company for the insurance policy. Because of this, variable type insurance policies, and the agents who sell them, are required to submit to monitoring and supervision of the Securities and Exchange Commission. The SEC does not look favorably on third party checks. This concern over third party checks became more stringent in the wake of the September 11th attacks and the associated government legislative actions such as the Patriots Act.
