Compilation of Rules and Regulations of the State of Georgia › Department 80 - RULES OF DEPARTMENT OF BANKING AND FINANCE › Chapter 80-5 - FINANCIAL INSTITUTIONS › Subject 80-5-3 - REGULATIONS REGARDING THE SALE OF ANNUITIES BY FINANCIAL INSTITUTIONS › Rule 80-5-3-.01 - Sale of Annuities by Financial Institutions; Definitions

Current through Rules and Regulations filed through June 27, 2024
(1) Fixed and variable annuities may be sold by financial institutions in Georgia, subject to regulations of the Department of Banking and Finance, regulations of the Department of Insurance and other applicable law.
(2) Financial institutions may sell or market fixed and variable annuities through state licensed insurance/annuity agents. The agents may be either employees of the financial institution or independent agents who have contracted with the financial institution to sell annuities. Prior approval of the Department of Banking and Finance is not required for a financial institution to sell annuities.
(3) As used in this chapter, the term:
(a) "Agency" means a person, including corporations, subsidiary corporations, partnerships, non-natural persons, etc., associated with or in the form of a financial institution who represents one or more insurers and is engaged in the business of soliciting or procuring or accepting applications for annuity sales;
(b) "Agent" means an individual appointed or employed by an insurer who solicits or procures applications for insurance; who in any way, directly or indirectly, makes or causes to be made any insurance contract for or on account of an insurer; or who as a representative of an insurer receives money for transmission to the insurer for an insurance contract, anything in the application or contract to the contrary withstanding, and who has on file with the Commissioner of Insurance a certificate of authority from each insurer with whom the agent places insurance;
(c) An "annuity" is a contract of insurance underwritten by an insurance company that pays an income benefit (monthly, quarterly, semiannually, or annually) for:
1) the life of a person (annuitant),
2) the lives of two or more persons, or
3) a specified period of time. Payments are made for a stated period of time or for the life or lives of the person or persons specified in the contract. The term does not cover the proceeds of life insurance no matter how payable;
(d) "Financial institution" means a state or national bank, savings and loan association, bank holding company, or a subsidiary or affiliate of any of the above;
(e) A "fixed annuity" means one party agrees to pay to the annuitant a stipulated amount (monthly, quarterly, semiannually, or annually, as desired) throughout the annuitant's lifetime whereby the dollar amount will not fluctuate regardless of adverse changes in the insurance company's mortality experience, investment return, and expenses;
(f) "Insurance/annuity agent" means an individual appointed or employed by a financial institution who solicits or procures applications for annuities; who in any way, directly or indirectly, makes or causes to be made any annuity contract for or on account of an insurer; and who has on file with the Commissioner of Insurance a certificate of authority from each insurer with whom the agent places annuities;
(g) A "variable annuity" means a contract that pays an annuitant income payments of which the amounts vary in accordance with the market value of the securities in the separate account of the insurer on the respective valuation days.