§ 58-58-145. Group annuity contracts defined; requirements; issuance of individual certificates.
§ 58‑58‑145. Group annuity contracts defined; requirements; issuance of individualcertificates.
(a) Any policy orcontract, except a joint, reversionary or survivorship annuity contract,whereby annuities are payable to more than one person, is a group annuitycontract. The person, firm or corporation to whom or to which the contract isissued, is the holder of the contract. The term "annuitant" means anyperson to whom or which payments are made under the group annuity contract. Noauthorized insurer shall deliver or issue for delivery in this State any groupannuity contract except upon a group of annuitants that conforms to thefollowing: under a contract issued to an employer, or to the trustee of a fundestablished by an employer or two or more employers in the same industry orkind of business, the stipulated payments on which shall be paid by the holderof the contract either wholly from the employer's funds or funds contributed bythe employer, or partly from the funds and partly from funds contributed by theemployees covered by such contract, and providing a plan of retirementannuities under a plan which permits all of the employees of such employer orof any specified class or classes thereof to become annuitants. Any such groupof employees may include retired employees, and may include officers andmanagers as employees, and may include the employees of subsidiary oraffiliated corporations of a corporation employer, and may include theindividual proprietors, partners and employees of affiliated individuals andfirms controlled by the holders through stock ownership, contract or otherwise.
(b) The insurer of agroup annuity contract shall issue to the policyholder or to the annuitantdirectly, within 30 days of the annuitant's enrollment in the group annuitycontract, an individual certificate for each annuitant which:
(1) Identifies theannuity to which the annuitant is entitled.
(2) States the name ofthe person to whom the annuity is payable.
(3) Discloses all of therights and obligations of the insurer, the policyholder, the annuitant, and thepersons to whom the annuity is payable with respect to the group annuitycontract.
G.S. 58‑3‑150applies to the form of the individual certificate required by this subsection.
(c) Each group annuitycontract shall include a provision that the insurer will issue to thepolicyholder within 30 days of the effective date of the contract, for deliveryto each annuitant, an individual certificate setting forth the informationdescribed in subsection (b) of this section.
(d) This section doesnot apply to annuities used to fund:
(1) An employee pensionplan that is covered by the Employee Retirement Income Security Act of 1974(ERISA);
(2) A plan described insections 401(a), 401(k), 403(b), or 457 of the Internal Revenue Code, where theplan, as defined in ERISA, is established or maintained by an employer;
(3) A governmental orchurch plan defined in section 414 of the Internal Revenue Code or a deferredcompensation plan of a state or local government or a tax‑exemptorganization under section 457 of the Internal Revenue Code; or
(4) A nonqualifieddeferred compensation arrangement established or maintained by an employer orplan sponsor. (1947,c. 721; 1993, c. 506, s. 3; 2005‑234, s. 3; 2006‑105, s. 2.9.)