West Virginia Code of State Rules
Agency 114 - Insurance Commission
Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER
Series 114-11E - Annuity Disclosure
Section 114-11E-4 - Standards for the Disclosure and Buyer's Guide
Universal Citation: 114 WV Code of State Rules 114-11E-4
Current through Register Vol. XLI, No. 38, September 20, 2024
4.1.
4.1.a. Where
the 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 4.2 and the Buyer's Guide, if any.
4.1.b. Where the application for an annuity
contract is taken by means other than in a face-to-face meeting, the applicant shall
be sent both the disclosure document and the Buyer's Guide no later than five (5)
business days after the completed application is received by the insurer.
4.1.b.1. With respect to an application received
as a result of a direct solicitation through the mail:
4.1.b.1.A. Providing a Buyer's Guide in a mailing
inviting prospective applicants to apply for an annuity contract shall be deemed to
satisfy the requirement that the Buyer's Guide be provided no later than five (5)
business days after receipt of the application.
4.1.b.1.B. Providing a disclosure document in a
mailing inviting a prospective applicant to apply for an annuity contract shall be
deemed to satisfy the requirement that the disclosure document be provided no later
than five (5) business days after receipt of the application.
4.1.b.2. With respect to an application received
via the Internet:
4.1.b.2.A. Taking reasonable
steps to make the Buyer's Guide available for viewing and printing on the insurer's
website shall be deemed to satisfy the requirement that the Buyer's Guide be
provided no later than five (5) business day of receipt of the
application.
4.1.b.2.B. Taking
reasonable steps to make the disclosure document available for viewing and printing
on the insurer's website shall be deemed to satisfy the requirement that the
disclosure document be provided no later than five (5) business days after receipt
of the application.
4.1.b.3.
A solicitation for an annuity contract provided in other than a face-to-face meeting
shall include a statement that the proposed applicant may contact the Commissioner
for a free annuity Buyer's Guide. In lieu of the foregoing statement, an insurer may
include a statement that the prospective applicant may contact the insurer for a
free annuity Buyer's Guide.
4.1.c. Where the Buyer's Guide and disclosure
document are not provided at or before the time of application, a free look period
of no less than fifteen (15) days shall be provided for the applicant to return the
annuity contract without penalty. This free look shall run concurrently with any
other free look provided under state law or rule.
4.2. At a minimum, the following information shall be included in the disclosure document required to be provided under this rule:
4.2.a. The generic name of the contract, the
company product name, if different, and form number, and the fact that it is an
annuity;
4.2.b. The insurer's legal
name, physical address, website address and telephone number;
4.2.c. A description of the contract and its
benefits, emphasizing its long-term nature, including examples where appropriate:
4.2.c.1. The guaranteed and non-guaranteed
elements of the contract, and their limitations, if any, including for fixed indexed
annuities, the elements used to determine the index-based interest, such as the
participation rates, caps or spread, and an explanation of how they
operate;
4.2.c.2. An explanation of the
initial crediting rate, or for fixed indexed annuities, an explanation of how the
index-based interest is determined, specifying any bonus or introductory portion,
the duration of the rate and the fact that rates may change from time to time and
are not guaranteed;
4.2.c.3. Periodic
income options both on a guaranteed and non-guaranteed basis;
4.2.c.4. Any value reductions caused by
withdrawals from or surrender of the contract;
4.2.c.5. How values in the contract can be
accessed;
4.2.c.6. The death benefit, if
available and how it will be calculated;
4.2.c.7. A summary of the federal tax status of
the contract and any penalties applicable on withdrawal of values from the contract;
and
4.2.c.8. Impact of any rider,
including, but not limited to, a guaranteed living benefit or long-term care
rider;
4.2.d. Specific dollar
amount or percentage charges and fees shall be listed with an explanation of how
they apply; and
4.2.e. Information about
the current guaranteed rate or indexed crediting rate formula, if applicable, for
new contracts that contains a clear notice that the rate is subject to
change.
4.3. Insurers shall define terms used in the disclosure document in language that facilitates the understanding by a typical person within the segment of the public to which the disclosure document is directed.
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