Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.8 - Annuities › Rule 6.6.804 - DEFINITIONS

Current through Register Vol. 13, July 5, 2024
For the purposes of this subchapter:
(1) "Charitable gift annuity" means a
				transfer of cash or other property by a donor to a charitable organization in
				return for an annuity payable over one or two lives, under which the actuarial
				value of the annuity is less than the value of the cash or other property
				transferred and the difference in value constitutes a charitable deduction for
				federal tax purposes, but does not include a charitable remainder trust or a
				charitable lead trust or other similar arrangement where the charitable
				organization does not issue an annuity and incur a financial obligation to
				guarantee annuity payments.
(2)
				"Contract owner" means the owner named in the annuity contract or certificate
				holder in the case of a group annuity contract.
(3) "Determinable elements" means 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, noninterest
				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.
(4) "Funding agreement"
				means an agreement for an insurer to accept and accumulate funds and to make
				one or more payments at future dates in amounts that are not based on mortality
				or morbidity contingencies.
(5)
				"Generic name" means a short title descriptive of the annuity contract being
				applied for or illustrated such as "single premium deferred annuity".
(6) "Guaranteed elements" means the premiums,
				credited interest rates (including any bonus), benefits, values, noninterest
				based credits, charges or elements of formulas used to determine any of these,
				that are guaranteed and determined at issue. An element is considered
				guaranteed if all of the underlying elements that go into its calculation are
				guaranteed.
(7) "Nonguaranteed
				elements" means the premiums, credited interest rates (including any bonus),
				benefits, values, noninterest 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 nonguaranteed if any of the
				underlying nonguaranteed elements are used in its calculation.
(8) "Structured settlement annuity" means 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.
Sec.
					 33-1-313 and
					 33-20-308, MCA; IMP, Sec.
					 33-20-308,
					 MCA;