§ 58-60-125. Purpose; intent; scope.
§ 58‑60‑125. Purpose; intent; scope.
(a) The purpose of thisPart is to provide standards for the disclosure of certain minimum informationabout annuity contracts to protect consumers and foster consumer education.This Part specifies the minimum information that must be disclosed and themethod for disclosing it in connection with the sale of annuity contracts. Thegoal of this Part is to ensure that purchasers of annuity contracts understandcertain basic features of annuity contracts.
(b) This Part appliesto all group and individual annuity contracts and certificates except:
(1) Registered ornonregistered variable annuities or other registered products.
(2) Immediate anddeferred annuities that contain no nonguaranteed elements.
(3) Annuities used to fundany of the following:
a. An employee pensionplan, which is covered by the Employee Retirement Income Security Act (ERISA).
b. A plan described bysection 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.
c. 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.
d. A nonqualifieddeferred compensation arrangement established or maintained by an employer orplan sponsor.
e. Structuredsettlement annuities.
f. Charitable giftannuities.
g. Funding agreements.
(c) This Part shallapply to annuities used to fund a plan or arrangement that is funded solely bycontributions an employee elects to make, whether on a pretax or after‑taxbasis, and where the insurance company has been notified that plan participantsmay choose from among two or more fixed annuity providers, and there is adirect solicitation of an individual employee by a producer for the purchase ofan annuity contract. As used in this subsection, direct solicitation shall notinclude any meeting held by a producer solely for the purpose of educating orenrolling employees in the plan or arrangement. (2005‑234, s. 1.11.)