[PARTVI.]  ANNUITY DISCLOSURE

 

[§431:10D-601]  Definitions.  Wheneverused in this part, unless a different meaning clearly appears from the context:

"Buyer's guide" means:

(1)  A buyer's guide to fixed deferred annuitiesapproved by the commissioner; or

(2)  The National Association of InsuranceCommissioners Buyer's Guide to Fixed Deferred Annuities.

"Contract owner" means the ownernamed in the annuity contract or certificate holder in the case of a groupannuity contract.

"Determinable elements" meanselements that are derived from processes or methods that are guaranteed atissue and not subject to company discretion but where the values or amountscannot be determined until some point after issue.  These elements include:

(1)  Premiums;

(2)  Credited interest rates, including any bonus;

(3)  Benefits;

(4)  Values;

(5)  Non-interest-based credits;

(6)  Charges; or

(7)  Elements of formulas used to determine any of theabove.

These elements may be described as guaranteed butnot determined at issue.  An element is considered determinable if it wascalculated from underlying determinable elements only, or from bothdeterminable and guaranteed elements.

"Disclosure document" means adocument provided by an insurer to applicants or prospective applicants for anannuity contract that explains the terms of the contract and contains theinformation required in section 431:10D-603(d).

"Funding agreement" means anagreement for an insurer to:

(1)  Accept and accumulate funds; and

(2)  Make one or more payments at future dates inamounts that are not based on mortality or morbidity contingencies.

"Generic name" means a short titledescriptive of the annuity contract being applied for or illustrated, such as"single premium deferred annuity".

"Guaranteed elements" means:

(1)  Premiums;

(2)  Credited interest rates, including any bonus;

(3)  Benefits;

(4)  Values;

(5)  Non-interest-based credits;

(6)  Charges; or

(7)  Elements of formulas used to determine any of theabove,

which are guaranteed and determined at issue.  Anelement is considered guaranteed if all of the underlying elements used in itscalculation are guaranteed.

"Non-guaranteed elements" means:

(1)  Premiums;

(2)  Credited interest rates, including any bonus;

(3)  Benefits;

(4)  Values;

(5)  Non-interest-based credits;

(6)  Charges; or

(7)  Elements of formulas used to determine any of theabove,

which are subject to company discretion and are notguaranteed at issue.  An element is considered non-guaranteed if any of theunderlying non-guaranteed elements are used in its calculation.

"Structured settlement annuity"means:

(1)  A "qualified funding asset" as definedin section 130(d) of the Internal Revenue Code; or

(2)  An annuity that would be a "qualifiedfunding asset"  but for the fact that it is not owned by an assignee undera qualified assignment. [L 2006, c 71, pt of §1]