West Virginia Code of State Rules
Agency 114 - Insurance Commission
Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER
Series 114-11E - Annuity Disclosure
Section 114-11E-2 - Applicability
Universal Citation: 114 WV Code of State Rules 114-11E-2
Current through Register Vol. XLI, No. 38, September 20, 2024
2.1. This rule applies to all group and individual annuity contracts and certificates except:
2.1.a. Immediate and deferred annuities that do
not contain non-guaranteed elements;
2.1.b.
2.1.b.1.
Annuities used to fund:
2.1.b.1.A. An employee
pension plan which is covered by the Employee Retirement Income Security Act
("ERISA");
2.1.b.1.B. A plan described
by Sections 401(a), 401 (k) or 403(b) of the Internal Revenue Code, where the plan,
for purposes of ERISA, is established or maintained by an employer;
2.1.b.1.C. A governmental or church plan defined
in Section 414 or a deferred compensation plan of a state or local government or a
tax exempt organization under Section 457 of the Internal Revenue Code; or
2.1.b.1.D. A non-qualified deferred compensation
arrangement established or maintained by an employer or plan
sponsor;
2.1.b.2.
Notwithstanding paragraph 2.1.b.1, this rule shall apply to annuities used to fund a
plan or arrangement that is funded solely by contributions an employee elects to
make whether on a pre-tax or after-tax basis, and where the insurance company has
been notified that plan participants may choose from among two (2) or more fixed
annuity providers and there is a direct solicitation of an individual employee by a
producer for the purchase of an annuity contract. As used in this subsection, direct
solicitation may not include any meeting held by a producer solely for the purpose
of educating or enrolling employees in the plan or arrangement;
2.1.c. Structured settlement annuities;
2.1.d. Charitable gift annuities;
2.1.e. Funding agreements;
2.1.f. Non-registered variable annuities issued
exclusively to an accredited investor or qualified purchaser as those terms are
defined by the Securities Act of 1933 ( 15 U.S.C. Section 77 a et seq.), the
Investement Company Act of 1940 ( 15 U.S.C. Section 80a-1 et seq.), or the
regulations promulgated under either of those acts, and offered for sale and sold in
a transaction that is exempt from registration under the Securities Act of 1933 ( 15
U.S.C. Section 77 a et seq.); and
2.1.g.
Transactions involving variable annuities and other registered products in
compliance with Securities and Exchange Commission (SEC) rules and Financial
Industry Regulatory Authority (FINRA) rules relating to disclosures and
illustrations;
2.1.g.1. Notwithstanding
subdivision 2.1.g, the delivery of the Buyer's Guide is required in sales of
variable annuities, and when appropriate, in sales of other registered
products.
2.1.g.2. Nothing in this
subsection shall limit the Commissioner's ability to enforce the provisions of this
rule or to require additional disclosure.
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