1. (a) Except as provided in (b) of this section, 3 AAC 26.770 - 3 AAC 26.789 apply to any sale or recommendation of an annuity.

2. (b) Unless a provision of 3 AAC 26.770 - 3 AAC 26.789 specifically includes that recommendation, 3 AAC 26.770 - 3 AAC 26.789 do not apply to a transaction involving a

   1. (1) direct-response solicitation if the recommendation is not based on information collected from the consumer under 3 AAC 26.770 - 3 AAC 26.789; or

   2. (2) contract used to fund

      1. (A) an employee pension or welfare benefit plan that is covered under 29 U.S.C. 1001 - 1461 (Employee Retirement Income Security Act of 1974);
      2. (B) a plan described in 26 U.S.C. 401(a) or (k), 26 U.S.C. 403(b), or 26 U.S.C. 408(k) or (p) (Internal Revenue Code) if the plan is established or maintained by an employer;
      3. (C) a governmental or church plan defined in 26 U.S.C. 414 (Internal Revenue Code), including a governmental or church welfare benefit plan;
      4. (D) a deferred compensation plan of a state or local government or tax-exempt organization under 26 U.S.C. 457 (Internal Revenue Code);
      5. (E) a nonqualified deferred compensation arrangement under 26 U.S.C. 409A (Internal Revenue Code) established or maintained by an employer or plan sponsor;
      6. (F) a settlement of or assumption of liabilities associated with personal injury litigation or other dispute or claim resolution process; or
      7. (G) a formal prepaid funeral contract.
3. (c) Nothing in 3 AAC 26.770 - 3 AAC 26.789 means that an officer, director, or employee of an insurer that transacts insurance, including making a recommendation to a consumer regarding the suitability of an annuity contract, does not need to be licensed under AS 21.27.

(Eff. 7/25/2008, Register 187; am 10/16/2011, Register 200; am 11/23/2022, Register 244)