Individual beneficiary of a Cash Value Insurance Contract or an Annuity Contract
A financial institution can treat an individual beneficiary (other than the owner) who receives a death benefit under a Cash Value Insurance Contract or an Annuity Contract as a non-Reportable Person unless the financial institution has knowledge or reason to know that the beneficiary is, in fact, a Reportable Person. A financial institution has reason to know that a beneficiary of a Cash Value Insurance Contract or an Annuity Contract is a Reportable Person if the information collected and associated with the beneficiary contains indicia as described in paragraph B of Section III of the DAC.
Group Cash Value Insurance Contracts or group Annuity Contracts
A Financial Institution can treat an account that is a group Cash Value Insurance Contract or a group Annuity Contract, and that meets the requirements set out below, as a non-Reportable Account until the date on which an amount is payable to an employee/certificate holder or beneficiary (for FATCA,
this is subject to a requirement that the financial institution obtains a certification from the employer that no employee/certificate holder (Account Holder) is a US Person).
A financial institution is not required to review all the account information collected by the employer to determine if an Account Holder’s status is unreliable or incorrect.
The requirements are that: