688A.470 - Provision of buyer's guide and disclosure statement to applicant for annuity

688A.470. Provision of buyer's guide and disclosure statement to applicant for annuity

1. Except as otherwise provided in subsection 3, an insurer or a producer of insurance shall provide a buyer's guide and a disclosure statement to each applicant for an annuity:

(a) If the application for an annuity is submitted in person to the insurer or producer of insurance, at the time that the application is submitted.

(b) If the application for an annuity is not submitted in person to the insurer or producer of insurance, not later than 5 business days after the application is received by the insurer or producer of insurance.

2. The disclosure statement required by subsection 1 must be written in plain language and include, without limitation:

(a) A brief description of the annuity, including, without limitation, a statement that the contract is an annuity, an explanation of the long-term nature of an annuity, the generic name of the annuity and the product name for the annuity that is used by the insurer or producer of insurance;

(b) The name, address and telephone number, including a toll-free number, if available, of the insurer or producer of insurance;

(c) A brief description of any determinable elements, the guaranteed elements and the nonguaranteed elements, an explanation of the method by which the determinable elements, guaranteed elements and nonguaranteed elements will be calculated and an explanation of the impact that the nonguaranteed elements may have on the benefits and values of the annuity;

(d) The crediting rate, any bonus or introductory portion of the crediting rate, the duration of the crediting rate and a disclosure that the crediting rate may change in value during the life of the annuity;

(e) Periodic income options, regardless of whether the options are guaranteed or nonguaranteed;

(f) An explanation of any reduction in the value of the annuity that would be caused by a withdrawal of money from the annuity or the surrender of the annuity by the owner of the annuity;

(g) An explanation of any method by which the values of the annuity can be accessed by the owner of the annuity;

(h) The value of any death benefit paid by the annuity and an explanation of the method by which the death benefit is calculated;

(i) An explanation of any effect that the annuity will have upon the tax status of the owner of the annuity and any tax penalties that may result upon any withdrawal of money from the annuity;

(j) An explanation of any rider to the annuity, including, without limitation, a rider that contains long-term care benefits;

(k) The amount of and an explanation of any charges and fees associated with the annuity, including, without limitation, a premium tax;

(l) The amount of the current guaranteed interest rates of the annuity and an explanation that the interest rates are not guaranteed for any other annuities that may be purchased in the future by the owner of the annuity;

(m) An explanation of the method by which the owner of the annuity may terminate the annuity and any penalties that may occur as a result of the termination;

(n) The date on which the owner of the annuity will begin to receive benefits from the annuity and the date on which the payment of those benefits will cease; and

(o) An explanation of the method by which the owner of the annuity may withdraw money from the annuity and any penalties associated with a withdrawal.

3. An insurer or a producer of insurance is not required to provide to an applicant the buyer's guide and disclosure statement that is required by subsection 1 if:

(a) The annuity that the applicant is applying for is a variable annuity, investment annuity or any other type of annuity that is subject to the registration requirements of the Securities Act of 1933, 15 U.S.C. §§ 77 a et seq.; and

(b) The insurer or producer of insurance provides a prospectus to the applicant that satisfies the requirements of section 10 of the Securities Act of 1933, 15 U.S.C. §§ 77 b(a)(10).

Added to NAC by Comm'r of Insurance by R076-05, eff. 2-23-2006

NRS 679B.130

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