Nev. Admin. Code § 688A.450 - Applicability of provisions
Current through October 13, 2021
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NAC 688A.450 Applicability of provisions. (NRS 679B.130)
1. Except as otherwise provided in subsections 2 and 3, NAC 688A.400 to 688A.475, inclusive, apply to:
(a) Any solicitation, negotiation or procurement of annuities occurring within this State;
(b) Any issuer of annuities, including, without limitation, fraternal benefit societies; and
(c) Individual deferred annuities.
2. NAC 688A.400 to 688A.475, inclusive, do not apply to:
(a) Annuities used to pay for:
(1) An employee pension or welfare benefit plan that is covered by the Employee Retirement and Income Security Act of 1974, 29 U.S.C. §§ 1001 et seq.
(3) A governmental plan, as defined in 26 U.S.C. § 414(d).
(4) A church plan, as defined in 26 U.S.C. § 414(e).
(5) A government or church welfare benefit plan.
(6) A deferred compensation plan of a state or local government or a tax exempt organization authorized by 26 U.S.C. § 457.
(7) A nonqualified deferred compensation arrangement.
(8) A settlement or an assumption of liabilities associated with litigation or any other process for dispute resolution related to a claim for compensation for personal injury.
(9) A prepaid funeral contract.
(10) A structured settlement annuity.
(11) A funding agreement.
(b) Immediate annuity contracts that do not contain any nonguaranteed elements.
(c) Annuities purchased from an insurer in response to a direct-response solicitation and where the purchase was not based on a recommendation from the insurer.
3. Notwithstanding the provisions of subsection 2, NAC 688A.400 to 688A.475, inclusive, apply to any annuity that is used to pay for a plan or arrangement which is paid for solely by contributions made by an employee on a pretax or after-tax basis and where participants are able to choose from among two or more fixed annuity providers.
4. As used in this section:
(a) “Funding agreement” means an agreement under which an insurer accepts and accumulates money for the purpose of making one or more future payments to a person that are not based on mortality or morbidity contingencies.
(b) “Structured settlement annuity” means:
(1) A qualified funding asset that meets the requirements of section 130(d) of the Internal Revenue Code, 26 U.S.C. § 130(d); or
(2) An annuity that meets the requirements to be a qualified funding asset pursuant to section 130(d) of the Internal Revenue Code, 26 U.S.C. § 130(d), except that the annuity is not owned by an assignee under qualified assignment.
(Added to NAC by Comm’r of Insurance by R076-05, eff. 2-23-2006)