Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-129 - ANNUITY DISCLOSURE › Section 482-1-129-.04 - Definitions

Current through Register Vol. 42, No. 9, June 28, 2024
(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.