[§431:10D-603]  Standards for the disclosuredocument and buyer's guide.  (a)  Where the application for an annuitycontract is taken:

(1)  In a personal meeting, both the buyer's guide anddisclosure document shall be given to the applicant at or before the time ofapplication;

(2)  By means other than in a personal meeting, boththe buyer's guide and disclosure document shall be sent to the applicant nolater than five business days after the completed application is received bythe insurer;

(3)  By means of a direct solicitation through themail, providing both the buyer's guide and disclosure document in the mailinginviting the prospective applicant to apply for the annuity contract shall bedeemed to satisfy the requirement that the buyer's guide and disclosurestatement be provided no later than five business days after receipt of theapplication; and

(4)  By means of the insurer's internet website, theinsurer's reasonable steps to make the buyer's guide available for viewing andprinting on the insurer's website shall be deemed to satisfy the requirementthat the buyer's guide and disclosure statement be provided no later than fivebusiness days after receipt of the application.

(b)  A solicitation for an annuity contractprovided in other than a personal meeting shall include a statement that theprospective applicant may contact the insurance division for a free buyer'sguide.  In lieu of the foregoing statement, an insurer may include a statementthat the prospective applicant may contact the insurer for a free buyer'sguide.

(c)  If the buyer's guide and disclosuredocument are not provided at or before the time of application, a free-lookperiod of no less than fifteen days shall be provided for the applicant toreturn the annuity contract without penalty, which period shall runconcurrently with any other free-look period provided by law.

(d)  The disclosure document shall include atleast the following information:

(1)  The generic name of the contract;

(2)  The company product name, if different from thegeneric name;

(3)  The form number;

(4)  The fact that the product is an annuity;

(5)  The insurer's name and address;

(6)  A description of the contract and its benefits,which shall emphasize its long-term nature and include examples, where appropriate,such as:

(A)  The guaranteed, non-guaranteed, anddeterminable elements of the contract, their limitations, if any, and anexplanation of how they operate; and

(B)  An explanation of the initial creditingrate, specifying any bonus or introductory portion, the duration of the rate,and the fact that rates may change from time to time and are not guaranteed;

(7)  Periodic income options on both a guaranteed andnon-guaranteed basis;

(8)  Any value reductions caused by withdrawals fromor surrender of the contract;

(9)  How values in the contract can be accessed;

(10)  The death benefit, if available, and how it willbe calculated;

(11)  A summary of the federal tax status of thecontract and any penalties applicable on withdrawal of values from thecontract;

(12)  The effect of any rider, such as a long-term-carerider;

(13)  A listing of specific dollar-amount or percentagecharges and fees and an explanation of how they apply; and

(14)  Information about the current guaranteed rate fornew contracts that contains a clear notice that the rate is subject to change.

(e)  Insurers shall define terms used in thedisclosure statement in language that facilitates comprehension by the averageperson within the segment of the public to which the disclosure statement isdirected. [L 2006, c 71, pt of §1]