Advisory Opinion on ERISA Prohibited Transaction Exemption 92-06

This document is about the U.S. Department of Labor providing guidance on the applicability of Prohibited Transaction Exemption 92-06, which allows employee benefit plans to sell individual life insurance or annuity contracts to certain parties such as plan participants, their relatives, or other employee benefit plans. The guidance covers three specific questions related to the interpretation of PTE 92-06, including whether sales to multiple relatives are permitted, whether a policy covering both the participant and their spouse is considered an "individual life insurance contract", and whether the partial sale of an insurance contract is covered by the exemption.