1. A. The commissioner has determined that the following terms are not defined under the Louisiana Banking Code, R.S. 6:1 et seq., and adopts the following definitions for all purposes set forth therein.

   1. Fixed Annuity―a form of financial investment instrument whose primary function is to pay periodically during the life of the annuitant or during a term fixed by contract, but not upon the occurrence of a loss on a specified subject by specified perils.
   2. Insurance―a contract, the primary purpose of which is for a stipulated consideration one party undertakes to compensate the other for loss on a specified subject by specified perils.
   3. Variable Annuity―a form of financial investment instrument whose primary function is to pay periodically during the life of the annuitant or during a term fixed by contract (but not upon the occurrence of a loss on a specified subject by specified perils) an amount based upon the value of the securities portfolios in which an investment is made.

Authority Note

AUTHORITY NOTE: Promulgated in accordance with R.S. 6:121, 6:242 and 6:5.

Historical Note

HISTORICAL NOTE: Promulgated by the Department of Economic Development, Office of Financial Institutions, LR 19:611 (May 1993).