Current through Register Vol. 42, No. 10, July 31, 2024
Section 482-1-129-.04 - Definitions(1) The following definitions shall apply in this chapter:(a) BUYERS GUIDE. The National Association of Insurance Commissioner's approved Annuity Buyer's Guide.(b) CONTRACT OWNER. The owner named in the annuity contract or certificate holder in the case of a group annuity contract.(c) DETERMINABLE ELEMENTS. Elements that are derived from processes or methods that are guaranteed at issue and not subject to company discretion, but where the values or amounts cannot be determined until some point after issue. These elements include the premiums, credited interest rates (including any bonus), benefits, values, non-interest based credits, charges or elements of formulas used to determine any of these. These elements may be described as guaranteed but not determined at issue. An element is considered determinable if it was calculated from underlying determinable elements only, or from both determinable and guaranteed elements.(d) GENERIC NAME. A short title descriptive of the annuity contract being applied for or illustrated such as "single premium deferred annuity."(e) GUARANTEED ELEMENTS. The premiums, credited interest rates (including any bonus), benefits, values, non-interest based credits, charges or elements of formulas used to determine any of these, that are guaranteed or have determinable elements at issue. An element is considered guaranteed if all of the underlying elements that go into its calculation are guaranteed.(f) ILLUSTRATION. A personalized presentation or depiction prepared for and provided to an individual consumer that includes non-guaranteed elements of an annuity contract over a period of years.(g) MARKET VALUE ADJUSTMENT or "MVA" FEATURE. A positive or negative adjustment that may be applied to the account value and/or cash value of the annuity upon withdrawal, surrender, contract annuitization or death benefit payment based on either the movement of an external index or on the company's current guaranteed interest rate being offered on new premiums or new rates for renewal periods, if that withdrawal, surrender, contract annuitization or death benefit payment occurs at a time other than on a specified guaranteed benefit date.(h) NON-GUARANTEED ELEMENTS. The premiums, credited interest rates (including any bonus), benefits, values, dividends, non-interest based credits, charges or elements of formulas used to determine any of these, that are subject to company discretion and are not guaranteed at issue. An element is considered non-guaranteed if any of the underlying non-guaranteed elements are used in its calculation.(i) REGISTERED PRODUCT. An annuity contract or life insurance policy subject to the prospectus delivery requirement of the Securities Act of 1033.(j) STRUCTURED SETTLEMENT ANNUITY. A "qualified funding asset" as defined in section 130(d) of the Internal Revenue Code or an annuity that would be a qualified funding asset under section 130(d) but for the fact that it is not owned by an assignee under a qualified assignment.Ala. Admin. Code r. 482-1-129-.04
New Rule: September 23, 2003; effective October 11, 2003. Filed with LRS October 1, 2003. Rule is not subject to the Alabama Administrative Procedure Act.Amended: August 6, 20 14; effective March 1, 2015. Filed with LRS August 6, 2014. Rule is not subject to the Alabama Administrative Procedure Act.Amended by Alabama Administrative Monthly Volume XXXVII, Issue No. 07, April 30, 2019, eff. 4/21/2019.Author: Commissioner of Insurance
Statutory Authority:Code of Ala. 1975, § 27-2-17, 27-12-1 et seq., 27-15-1 et seq.