Section 500.4153 - Scope of act.
THE INSURANCE CODE OF 1956 (EXCERPT)
Act 218 of 1956
500.4153 Scope of act.
Sec. 4153.
(1) This chapter applies to any recommendation to purchase or exchange an annuity made to a consumer by an insurance producer, or an insurer where no producer is involved, that results in the purchase or exchange recommended.
(2) This chapter does not apply to any recommendation to purchase or exchange an annuity involving any of the following:
(a) Direct response solicitations where there is no recommendation based on information collected from the consumer.
(b) Contracts used to fund any of the following:
(i) An employee pension or welfare benefit plan that is covered by the employee retirement and income security act, Public Law 93-406.
(ii) A plan described by 26 USC 401(a), 26 USC 401(k), 26 USC 403(b), 26 USC 408(k), or 26 USC 408(p), if established or maintained by an employer.
(iii) A government or church plan defined in 26 USC 414, a government or church welfare benefit plan, or a deferred compensation plan of a state or local government or tax exempt organization under 26 USC 457.
(iv) A nonqualified deferred compensation arrangement established or maintained by an employer or plan sponsor.
(v) Settlements of or assumptions of liabilities associated with personal injury litigation or any dispute or claim resolution process.
(vi) Formal prepaid funeral contracts.
History: Add. 2006, Act 399, Imd. Eff. Sept. 29, 2006