Utah Admin. Code R590-229-5 - Standards for the Disclosure Document and Buyer's Guide
(1)
(a)
When an application for an annuity contract is taken in a face-to-face meeting,
the applicant shall, at or before the time of application, be given both the
disclosure document described in Subsection (2) and the appropriate buyer's
guide described in Section
R590-229-4.
(b) When an application for an annuity
contract is not taken in a face-to-face meeting, the applicant shall be sent
both the disclosure document described in Subsection (2) and the appropriate
buyer's guide described in Section
R590-229-4 no later than five
business days after the completed application is received by the insurer.
(i) For an application received as a result
of a solicitation through the mail:
(A)
providing a buyer's guide in the mailing inviting a prospective applicant to
apply for an annuity contract shall satisfy the requirement that the
appropriate buyer's guide is provided no later than five business days after
receipt of the application; and
(B)
providing a disclosure document in the mailing inviting a prospective applicant
to apply for an annuity contract shall satisfy the requirement that the
disclosure document is provided no later than five business days after receipt
of the application.
(ii)
For an application received via the internet:
(A) making the appropriate buyer's guide
available for viewing and printing on the insurer's website shall satisfy the
requirement that the appropriate buyer's guide is provided no later than five
business days after receipt of the application; and
(B) making the disclosure document available
for viewing and printing on the insurer's website shall satisfy the requirement
that the disclosure document is provided no later than five business days after
receipt of the application.
(c) A solicitation for an annuity contract
provided in other than a face-to-face meeting shall include a statement that
the prospective applicant can obtain from the insurer a free annuity buyer's
guide upon request.
(2)
Disclosure document. The following information shall be included in the
disclosure document:
(a) the generic name of
the contract, the company product name, if different, the form number, and the
fact that it is an annuity;
(b) the
insurer's name and address;
(c) a
description of the contract and its benefits, emphasizing its long-term nature,
and examples, as appropriate, including:
(i)
the guaranteed, nonguaranteed and determinable elements of the contract, their
limitations, and an explanation of how they operate;
(ii) an explanation of the initial crediting
rate, specifying any bonus or introductory portion, the duration of the rate
and the fact that the rate may change from time to time and is not
guaranteed;
(iii) periodic income
options, both on a guaranteed and nonguaranteed basis;
(iv) any value reduction caused by a
withdrawal from or surrender of the contract;
(v) how the value of the contract can be
accessed;
(vi) the death benefit,
if available, and how it is calculated;
(vii) a summary of the federal tax status of
the contract and any penalty applicable on a withdrawal of a value from the
contract; and
(viii) the impact of
any rider, such as a long-term care rider;
(d) the specific dollar amount or percentage
of any charge or fee shall be listed with an explanation of how it applies;
and
(e) information about the
current guaranteed rate for a new contract that contains a clear notice that
the rate is subject to change.
(3) An insurer shall define terms used in the
disclosure document in language that is understandable by a typical person
within the segment of the public to which the disclosure document is
directed.
Notes
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