1. (1) The purpose of this rule is to provide a standard for the disclosure of information in connection with the sale of an annuity contract to protect a consumer and foster consumer education.

2. (2) This rule applies to an insurer when offering an individual or group annuity contract or certificate except:

   1. (a) a registered or non-registered variable annuity or other registered product;
   2. (b) a structured settlement annuity;
   3. (c) a funding agreement; or

   4. (d) an annuity used to fund:

      1. (i) an employee pension plan that is covered by the Employee Retirement Income Security Act (ERISA);
      2. (ii) a plan described by Section 401(a), 401(k), or 403(b) of the Internal Revenue Code where the plan is established or maintained by an employer;
      3. (iii) a government or church plan defined in Section 414, Internal Revenue Code;
      4. (iv) a deferred compensation plan of a state, a local government, or a tax-exempt organization under Section 457, Internal Revenue Code; or
      5. (v) a nonqualified deferred compensation arrangement established or maintained by an employer or plan sponsor.

3. (3) Notwithstanding Subsection (2)(d), this rule applies to an annuity used to fund a plan or arrangement that:

   1. (a) is funded only by contributions an employee elects to make on a pre-tax or after-tax basis; and
   2. (b) where there is direct solicitation of an individual employee by a producer for the purchase of an annuity contract.
4. (4) An immediate or deferred annuity that does not contain a nonguaranteed element is exempt from the disclosure document requirement of this rule.

KEY: insurance, annuity disclosure

Date of Last Change: November 7, 2024

Notice of Continuation: August 9, 2024

Authorizing, and Implemented or Interpreted Law: 31A-2-201; 31A-22-425