Utah Admin. Code R590-229-2 - Purpose and Scope

(1) The purpose of this rule is to provide a standard for the disclosure of information in connection with the sale of an annuity contract to protect a consumer and foster consumer education.

(2) This rule applies to an insurer when offering an individual or group annuity contract or certificate except:

(a) a registered or non-registered variable annuity or other registered product;

(b) a structured settlement annuity;

(c) a funding agreement; or

(d) an annuity used to fund:

(i) an employee pension plan that is covered by the Employee Retirement Income Security Act (ERISA);

(ii) a plan described by Section 401(a), 401(k), or 403(b) of the Internal Revenue Code where the plan is established or maintained by an employer;

(iii) a government or church plan defined in Section 414, Internal Revenue Code;

(iv) a deferred compensation plan of a state, a local government, or a tax-exempt organization under Section 457, Internal Revenue Code; or

(v) a nonqualified deferred compensation arrangement established or maintained by an employer or plan sponsor.

(3) Notwithstanding Subsection (2)(d), this rule applies to an annuity used to fund a plan or arrangement that:

(a) is funded only by contributions an employee elects to make on a pre-tax or after-tax basis; and

(b) where there is direct solicitation of an individual employee by a producer for the purchase of an annuity contract.

(4) An immediate or deferred annuity that does not contain a nonguaranteed element is exempt from the disclosure document requirement of this rule.

Notes

Utah Admin. Code R590-229-2

Amended by Utah State Bulletin Number 2023-08, effective 4/7/2023 Amended by Utah State Bulletin Number 2024-22, effective 11/7/2024