Section 3.26.755. Disclosure document and buyer's guide.

	(a)  If an application for an annuity contract is taken in a face-to-face meeting, the insurer or licensee shall at or before the time of application give the applicant a copy of   
		(1) the disclosure document described in (g) of this section; and   
		(2) the buyer's guide.   
	(b)  Except as provided in (c) and (d) of this section, if an application for an annuity contract is taken by a means other than in a face-to-face meeting, the insurer or licensee, no later than five working days after receiving the completed application, shall send the applicant copies of the documents described in (a)(1) - (2) of this section.   
	(c)  An insurer or licensee that receives an annuity application as a result of direct solicitation through the mail has complied with the requirements in (b) of this section if the insurer or licensee provided a copy of the documents described in (a)(1) - (2) of this section in the mailing that invited the prospective applicant to apply for an annuity contract.   
	(d)  If an insurer or licensee receives an annuity application by means of the Internet, the insurer or licensee may comply with the requirements in (b) of this section by making the documents described in (a)(1) - (2) of this section available for viewing and printing on the insurer's or licensee's website.   
	(e)  A solicitation other than a face-to-face solicitation for an annuity contract must include a statement that an applicant may contact the division or the insurer or licensee for a free buyer's guide.  
	(f)  If the documents described in (a)(1) - (2) of this section are not provided as required under (a) - (d) of this section, the insurer or licensee must include in the annuity contract the right for the applicant to return the annuity contract without penalty within 15 days of the applicant's receipt of the annuity contract.   
	(g)  The disclosure document referenced in this section must include at a minimum the following information:  
		(1) a statement that the contract is an annuity, including   
			(A) the form number of the annuity contract;   
			(B) the generic name of the contract; and   
			(C) the company product name, if different from the generic name;   
		(2) the insurer's or licensee's name and address;   
		(3) a description of the contract and the benefits provided by the contract that emphasizes the long-term nature of the contract including examples of the following, if appropriate:   
			(A) guaranteed, non-guaranteed, and determinable elements of the contract, and their limitations, if any, and an explanation of how each of the elements operates, including the impact on the benefits of the contract;   
			(B) the initial crediting rate specifying any bonus, the durations of the initial crediting rate and any bonus, and a statement that the rates may change and are not guaranteed;   
			(C) periodic income options both on a guaranteed and non-guaranteed basis, including a description of   
				(i) how the amount available to purchase income options is determined; and   
				(ii) generally when the income options will be available;   
			(D) the cash value, including partial withdrawals, available before, on, and after the maturity date of the contract and how the cash value will be calculated, including a description of any value reduction;   
			(E)  the death benefit, if available, and how it is calculated;   
			(F) how to access the values in the contract, including cash value, income options, partial withdrawals, and death benefits;   
			(G) a federal tax status summary and any potential penalties applicable upon withdrawal of values from the contract;   
			(H) the impact on any annuity values of a benefit rider;   
		(4) the specific dollar amount or percentage of charges and fees with an explanation of how the charges and fees apply to the contract;   
		(5) information about the current guaranteed interest rate for new contracts with a clear statement that the rate is subject to change.  
	(h)  An insurer or licensee shall define the terms used in the disclosure statement described in (g) of this section in language that facilitates understanding by a typical person within the segment of the public to which the annuity contract is marketed or sold.  

Authorities

21.06.090;21.36.020;21.36.030;21.36.040;21.36.050;21.36.900;01.05.031;21.36.150;44.62.125

Notes

Reference

3 AAC 26.775

Authority

AS 21.06.090 AS 21.36.020 AS 21.36.030 AS 21.36.040 AS 21.36.050 AS 21.36.900 Editor's note: In 2010 the revisor of statutes, acting under AS 01.05.031, renumbered former AS 21.36.150 as AS 21.36.900. As of Register 196 (January 2011), the regulations attorney made a conforming technical revision under AS 44.62.125(b)(6), to the authority citation that follows 3 AAC 26.755, so that the citation to former AS 21.36.150 now refers to the renumbered statute, AS 21.36.900.

History

Eff. 7/25/2008, Register 187; am 8/20/2016, Register 219

References

3.26.755