(1) The Contract Summary must be a separate document. All information required to be disclosed must be set out in such a manner as not to minimize or render any portion thereof obscure. Any amounts which remain level for two or more contract years may be represented by a single number if it is clearly indicated what amounts are applicable for each contract year. Amounts in subparagraphs (2)(f), (g), (i) and (k)3 of this section shall, in the Case of flexible premium annuity contracts, be determined either according to an anticipated pattern of consideration payments or on the assumption that considerations payable will be $100 a month or $1,000 per year. If not specified in the contract, annuity payments shall be assumed to commence at age sixty-five or ten years from issue, whichever is later. Zero amounts shall be displayed as zero and shall not be displayed as blank spaces.
(2) For purposes of this regulation, "Contract Summary" means a written statement describing the elements of the annuity contract and deposit fund, including but not limited to, where applicable, the following:
(a) A prominently placed title as follows: "Contract Summary" (This shall be followed by an identification of the annuity contract or deposit fund, or both, to which the summary applies);
(b) The name and address of the insurance agent or, if no agent is involved, a statement of the procedure to be followed in order to receive responses to inquiries regarding the Contract Summary;
(c) The full name and home office or administrative office address of the insurer which will issue the annuity contract or administer the deposit fund;
(d) One of the options under the contract available for annuity payout. This form of annuity payout should be used for providing information in subparagraphs (2)(f), (g) and (i) of this section;
(e) A prominent statement that the contract does not provide cash surrender values if such is the case;
(f) The amount of the guaranteed annuity payments at the scheduled commencement of the annuity, based on the assumption that all scheduled considerations are paid and there are no prior withdrawals from or partial surrender of the contract and no indebtedness to the insurer on the contract;
(g) On the same basis as for subparagraph (2)(f) of this section except for guarantees, illustrative annuity payments not greater in amount than those based on
1. the current dividend scale and the interest rate currently used to accumulate dividends under such contracts, or the current excess interest rate credited by the insurer, and
2. current annuity purchase rates.
A dividend scale or excess interest rate which has been publicly declared by the insurer with an effective date not more than two months subsequent to the date of declaration shall be considered a current dividend scale or current excess interest rate;
(h) For annuity contracts or deposit funds for which guaranteed cash surrender values at any duration are less than the total considerations paid, a prominent statement that such contract or fund may result in loss if kept for only a few years, together with a reference to the schedule of guaranteed cash surrender values required by subparagraph (2)(i)3. of this section;
(i) The following amounts, where applicable, for the first ten contract years and representative contract years thereafter sufficient to clearly illustrate the patterns of considerations and benefits, including but not limited to, the twentieth contract year and at least one age from 60-70 and at the scheduled commencements of annuity payments:
1. The gross annual or single consideration for the annuity contract. Any additional considerations for optional benefits, such as disability premium waiver, should be shown separately;
2. Scheduled annual or single deposit for the deposit fund, if any;
3. The total guaranteed death benefit and cash surrender value at the end of the year; or, if no guaranteed cash surrender values are provided, the total guaranteed paid-up annuity at the end of the year. Values for a deposit fund must be shown separately from those for a basic contract;
4. The total illustrative death benefit and cash surrender value or paid-up annuity at the end of the year, not greater in amount than that based on:
(i) the current dividend scale and the interest rate currently used to accumulate dividends under such contracts or the current excess interest rate credited by the insurer, and
(ii) current annuity purchase rates.
A dividend scale or excess interest rate which has been publicly declared by the insurer with an effective date not more than two months subsequent to the date of declaration shall be considered a current dividend scale or current excess interest rate.
(j) For a Contract Summary which includes values based on the current dividend scale or the current dividend accumulation or excess interest rate, a statement that such values are illustrations and are not guaranteed.
(k) The following should be shown with regard to the consideration for the basic annuity contract or deposit fund. Considerations applicable to optional benefits, such as disability premium waiver, should be excluded.
1. A statement of all fees, charges and loading amounts that are or may be deducted from initial or subsequent considerations paid or that are or may be deducted from the contract or fund values prior to or at contract maturity, including but not limited to any surrender penalties, discontinuance fees, partial surrender or withdrawal penalties or fees, transaction fees, and account maintenance fees.
2. A statement of the interest rates used in calculating the guaranteed and illustrative contract or fund values.
3. The yield on gross considerations at the end of ten years (if the annuity payments have not yet commenced) and at the scheduled commencement of annuity payments. For contracts without surrender values, only the yield at the scheduled commencement of annuity payments need be shown. The yield shall be figured on the basis of the contract value used to determine the annuity payments. These yield figures shall be shown on both a guaranteed and illustrative basis. They represent the effective annual interest rates at which the accumulation of 100% of all gross considerations would be equal to the guaranteed and illustrative cash surrender values at the points specified. For contracts without surrender values the yields shall be figured on the basis of the contract values used to determine annuity payments at the points specified.
(l) The date on which the Contract Summary is prepared.
O.C.G.A. Secs. 33-2-9, 33-6-12.
