IC 27-1-12.6
Chapter 12.6. General Provisions of Annuity Contracts
IC 27-1-12.6-1 Application of law
Sec. 1. Each annuity contract, as defined in IC 27-1-12.5, whether
in a separate instrument, or in a separate provision in or as a rider to
a life insurance policy, shall be subject to the limitations and
disclosures set out in this chapter. As added by Acts 1977, P.L.286, SEC.2.
IC 27-1-12.6-2 Calculation of paid-up nonforfeiture benefits
Sec. 2. Each annuity contract shall contain a brief and general
statement of the method to be used in calculating the paid-up
nonforfeiture benefits available under the contract. As added by Acts 1977, P.L.286, SEC.2.
IC 27-1-12.6-3 Cash surrender value table
Sec. 3. Each annuity contract providing for single or fixed
scheduled considerations shall contain a table showing the cash
surrender value, if any, available under the contract on each contract
anniversary date, during the first twenty (20) contract years or during
the term of the contract, whichever is shorter. Such table shall be
calculated upon the assumptions that there are no additional amounts
credited by the company to the contract, that there is no indebtedness
to the company on account of or secured by the contract and that
there are no prior withdrawals from or partial surrender of the
contract. As added by Acts 1977, P.L.286, SEC.2.
IC 27-1-12.6-4 Automatic payments
Sec. 4. An annuity contract shall not contain a provision wherein
life insurance premium or annuity consideration payments may be
automatically made by the company by withdrawing from or placing
a loan against annuity nonforfeiture values provided under the
contract. As added by Acts 1977, P.L.286, SEC.2.
IC 27-1-12.6-5 Right to return contracts
Sec. 5. Each annuity contract shall contain a provision giving the
purchaser an unrestricted right to return the contract to the company
or to the insurance producer through whom it was purchased, on or
before the tenth day after it is received by the purchaser, such return
entitling the purchaser to a return of the value of a variable annuity
account or the monies paid by the purchaser to a fixed account in
connection with the issuance of the contract. This provision shall be
conspicuously placed on the face of the contract. This provision does
not apply to contracts issued in connection with a pension, annuity,
or profit-sharing plan qualified or exempt under Sections 401, 403,
404, or 501 of the Internal Revenue Code, if participation in the plan
is a condition of employment. As added by Acts 1977, P.L.286, SEC.2. Amended by P.L.2-1987,
SEC.37; P.L.116-1994, SEC.26; P.L.178-2003, SEC.17.
IC 27-1-12.6-6 Disclosures
Sec. 6. If an annuity contract does not provide a cash surrender
benefit or a death benefit prior to the commencement of any annuity
payments at least equal to the minimum nonforfeiture amounts
provided in IC 27-1-12.5, the company shall, in addition to the
disclosures provided in IC 27-1-12.5-8, make such disclosures as the
commissioner by regulation shall provide, including, but not limited
to, the following:
(1) The execution by the purchaser of a statement in such form
as the commissioner may approve, stating specifically the
following, as appropriate:
(i) the only nonforfeiture value provided by the contract is a
paid-up benefit;
(ii) the contract provides no cash surrender value;
(iii) the contract provides no benefit should the purchaser die
before maturity.
(2) The form shall be made a part of the application or may be
executed separately from and attached to the application. It
shall be executed at or prior to the time of executing the
application and shall be filed with the application in the
company's office. As added by Acts 1977, P.L.286, SEC.2.
IC 27-1-12.6-7 Rules and regulations
Sec. 7. The commissioner is authorized to promulgate rules and
regulations to provide disclosure of (1) the pertinent facts concerning
annuity contracts to purchasers of these contracts in advertising and
sales literature, (2) practices connected with their issuance, and (3)
their annual nonforfeiture and related values. As added by Acts 1977, P.L.286, SEC.2.
IC 27-1-12.6-8 Form of contracts
Sec. 8. An annuity contract shall not be issued or delivered in this
state until the form has been filed with the department, and not
thereafter if the department within thirty (30) days after this filing
gives a written notice to the company setting out the reasons why the
form of the contract does not comply with the laws of this state. As added by Acts 1977, P.L.286, SEC.2. IC 27-1-12.6-9 Disapproval of benefits
Sec. 9. The commissioner may disapprove any individual annuity
contract or contracts issued for delivery in Indiana which do not
provide a cash surrender value in accordance with IC 27-1-12.5 upon
cessation of the payment of considerations under the contract, if in
his opinion the annuity would otherwise be misleading, deceptive or
unfair to the purchaser. This provision does not, however, apply (i)
to such contract delivered in connection with a pension,
profit-sharing or employee benefit plan funded in whole or in part by
employer contributions, (ii) to annuities purchased in connection
with the termination or winding up of a pension, profit-sharing, or
employee benefit plan, or (iii) to an individual annuity contract
issued by a company organized and operated without profit to any
private shareholder or individual, exclusively for the purpose of
aiding nonproprietary education and scientific institutions, and
providing a nationwide pension system featuring full funding and full
and immediate vesting of benefits. As added by Acts 1977, P.L.286, SEC.2.
IC 27-1-12.6
Chapter 12.6. General Provisions of Annuity Contracts
IC 27-1-12.6-1 Application of law
Sec. 1. Each annuity contract, as defined in IC 27-1-12.5, whether
in a separate instrument, or in a separate provision in or as a rider to
a life insurance policy, shall be subject to the limitations and
disclosures set out in this chapter. As added by Acts 1977, P.L.286, SEC.2.
IC 27-1-12.6-2 Calculation of paid-up nonforfeiture benefits
Sec. 2. Each annuity contract shall contain a brief and general
statement of the method to be used in calculating the paid-up
nonforfeiture benefits available under the contract. As added by Acts 1977, P.L.286, SEC.2.
IC 27-1-12.6-3 Cash surrender value table
Sec. 3. Each annuity contract providing for single or fixed
scheduled considerations shall contain a table showing the cash
surrender value, if any, available under the contract on each contract
anniversary date, during the first twenty (20) contract years or during
the term of the contract, whichever is shorter. Such table shall be
calculated upon the assumptions that there are no additional amounts
credited by the company to the contract, that there is no indebtedness
to the company on account of or secured by the contract and that
there are no prior withdrawals from or partial surrender of the
contract. As added by Acts 1977, P.L.286, SEC.2.
IC 27-1-12.6-4 Automatic payments
Sec. 4. An annuity contract shall not contain a provision wherein
life insurance premium or annuity consideration payments may be
automatically made by the company by withdrawing from or placing
a loan against annuity nonforfeiture values provided under the
contract. As added by Acts 1977, P.L.286, SEC.2.
IC 27-1-12.6-5 Right to return contracts
Sec. 5. Each annuity contract shall contain a provision giving the
purchaser an unrestricted right to return the contract to the company
or to the insurance producer through whom it was purchased, on or
before the tenth day after it is received by the purchaser, such return
entitling the purchaser to a return of the value of a variable annuity
account or the monies paid by the purchaser to a fixed account in
connection with the issuance of the contract. This provision shall be
conspicuously placed on the face of the contract. This provision does
not apply to contracts issued in connection with a pension, annuity,
or profit-sharing plan qualified or exempt under Sections 401, 403,
404, or 501 of the Internal Revenue Code, if participation in the plan
is a condition of employment. As added by Acts 1977, P.L.286, SEC.2. Amended by P.L.2-1987,
SEC.37; P.L.116-1994, SEC.26; P.L.178-2003, SEC.17.
IC 27-1-12.6-6 Disclosures
Sec. 6. If an annuity contract does not provide a cash surrender
benefit or a death benefit prior to the commencement of any annuity
payments at least equal to the minimum nonforfeiture amounts
provided in IC 27-1-12.5, the company shall, in addition to the
disclosures provided in IC 27-1-12.5-8, make such disclosures as the
commissioner by regulation shall provide, including, but not limited
to, the following:
(1) The execution by the purchaser of a statement in such form
as the commissioner may approve, stating specifically the
following, as appropriate:
(i) the only nonforfeiture value provided by the contract is a
paid-up benefit;
(ii) the contract provides no cash surrender value;
(iii) the contract provides no benefit should the purchaser die
before maturity.
(2) The form shall be made a part of the application or may be
executed separately from and attached to the application. It
shall be executed at or prior to the time of executing the
application and shall be filed with the application in the
company's office. As added by Acts 1977, P.L.286, SEC.2.
IC 27-1-12.6-7 Rules and regulations
Sec. 7. The commissioner is authorized to promulgate rules and
regulations to provide disclosure of (1) the pertinent facts concerning
annuity contracts to purchasers of these contracts in advertising and
sales literature, (2) practices connected with their issuance, and (3)
their annual nonforfeiture and related values. As added by Acts 1977, P.L.286, SEC.2.
IC 27-1-12.6-8 Form of contracts
Sec. 8. An annuity contract shall not be issued or delivered in this
state until the form has been filed with the department, and not
thereafter if the department within thirty (30) days after this filing
gives a written notice to the company setting out the reasons why the
form of the contract does not comply with the laws of this state. As added by Acts 1977, P.L.286, SEC.2. IC 27-1-12.6-9 Disapproval of benefits
Sec. 9. The commissioner may disapprove any individual annuity
contract or contracts issued for delivery in Indiana which do not
provide a cash surrender value in accordance with IC 27-1-12.5 upon
cessation of the payment of considerations under the contract, if in
his opinion the annuity would otherwise be misleading, deceptive or
unfair to the purchaser. This provision does not, however, apply (i)
to such contract delivered in connection with a pension,
profit-sharing or employee benefit plan funded in whole or in part by
employer contributions, (ii) to annuities purchased in connection
with the termination or winding up of a pension, profit-sharing, or
employee benefit plan, or (iii) to an individual annuity contract
issued by a company organized and operated without profit to any
private shareholder or individual, exclusively for the purpose of
aiding nonproprietary education and scientific institutions, and
providing a nationwide pension system featuring full funding and full
and immediate vesting of benefits. As added by Acts 1977, P.L.286, SEC.2.
IC 27-1-12.6
Chapter 12.6. General Provisions of Annuity Contracts
IC 27-1-12.6-1 Application of law
Sec. 1. Each annuity contract, as defined in IC 27-1-12.5, whether
in a separate instrument, or in a separate provision in or as a rider to
a life insurance policy, shall be subject to the limitations and
disclosures set out in this chapter. As added by Acts 1977, P.L.286, SEC.2.
IC 27-1-12.6-2 Calculation of paid-up nonforfeiture benefits
Sec. 2. Each annuity contract shall contain a brief and general
statement of the method to be used in calculating the paid-up
nonforfeiture benefits available under the contract. As added by Acts 1977, P.L.286, SEC.2.
IC 27-1-12.6-3 Cash surrender value table
Sec. 3. Each annuity contract providing for single or fixed
scheduled considerations shall contain a table showing the cash
surrender value, if any, available under the contract on each contract
anniversary date, during the first twenty (20) contract years or during
the term of the contract, whichever is shorter. Such table shall be
calculated upon the assumptions that there are no additional amounts
credited by the company to the contract, that there is no indebtedness
to the company on account of or secured by the contract and that
there are no prior withdrawals from or partial surrender of the
contract. As added by Acts 1977, P.L.286, SEC.2.
IC 27-1-12.6-4 Automatic payments
Sec. 4. An annuity contract shall not contain a provision wherein
life insurance premium or annuity consideration payments may be
automatically made by the company by withdrawing from or placing
a loan against annuity nonforfeiture values provided under the
contract. As added by Acts 1977, P.L.286, SEC.2.
IC 27-1-12.6-5 Right to return contracts
Sec. 5. Each annuity contract shall contain a provision giving the
purchaser an unrestricted right to return the contract to the company
or to the insurance producer through whom it was purchased, on or
before the tenth day after it is received by the purchaser, such return
entitling the purchaser to a return of the value of a variable annuity
account or the monies paid by the purchaser to a fixed account in
connection with the issuance of the contract. This provision shall be
conspicuously placed on the face of the contract. This provision does
not apply to contracts issued in connection with a pension, annuity,
or profit-sharing plan qualified or exempt under Sections 401, 403,
404, or 501 of the Internal Revenue Code, if participation in the plan
is a condition of employment. As added by Acts 1977, P.L.286, SEC.2. Amended by P.L.2-1987,
SEC.37; P.L.116-1994, SEC.26; P.L.178-2003, SEC.17.
IC 27-1-12.6-6 Disclosures
Sec. 6. If an annuity contract does not provide a cash surrender
benefit or a death benefit prior to the commencement of any annuity
payments at least equal to the minimum nonforfeiture amounts
provided in IC 27-1-12.5, the company shall, in addition to the
disclosures provided in IC 27-1-12.5-8, make such disclosures as the
commissioner by regulation shall provide, including, but not limited
to, the following:
(1) The execution by the purchaser of a statement in such form
as the commissioner may approve, stating specifically the
following, as appropriate:
(i) the only nonforfeiture value provided by the contract is a
paid-up benefit;
(ii) the contract provides no cash surrender value;
(iii) the contract provides no benefit should the purchaser die
before maturity.
(2) The form shall be made a part of the application or may be
executed separately from and attached to the application. It
shall be executed at or prior to the time of executing the
application and shall be filed with the application in the
company's office. As added by Acts 1977, P.L.286, SEC.2.
IC 27-1-12.6-7 Rules and regulations
Sec. 7. The commissioner is authorized to promulgate rules and
regulations to provide disclosure of (1) the pertinent facts concerning
annuity contracts to purchasers of these contracts in advertising and
sales literature, (2) practices connected with their issuance, and (3)
their annual nonforfeiture and related values. As added by Acts 1977, P.L.286, SEC.2.
IC 27-1-12.6-8 Form of contracts
Sec. 8. An annuity contract shall not be issued or delivered in this
state until the form has been filed with the department, and not
thereafter if the department within thirty (30) days after this filing
gives a written notice to the company setting out the reasons why the
form of the contract does not comply with the laws of this state. As added by Acts 1977, P.L.286, SEC.2. IC 27-1-12.6-9 Disapproval of benefits
Sec. 9. The commissioner may disapprove any individual annuity
contract or contracts issued for delivery in Indiana which do not
provide a cash surrender value in accordance with IC 27-1-12.5 upon
cessation of the payment of considerations under the contract, if in
his opinion the annuity would otherwise be misleading, deceptive or
unfair to the purchaser. This provision does not, however, apply (i)
to such contract delivered in connection with a pension,
profit-sharing or employee benefit plan funded in whole or in part by
employer contributions, (ii) to annuities purchased in connection
with the termination or winding up of a pension, profit-sharing, or
employee benefit plan, or (iii) to an individual annuity contract
issued by a company organized and operated without profit to any
private shareholder or individual, exclusively for the purpose of
aiding nonproprietary education and scientific institutions, and
providing a nationwide pension system featuring full funding and full
and immediate vesting of benefits. As added by Acts 1977, P.L.286, SEC.2.
