Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 915 - ANNUITY DISCLOSURE › Section 031-915-4 - Definitions

Current through 2024-29, July 17, 2024
For the purposes of this rule:
A. "Buyers guide" means, as appropriate for
				the annuity being offered for sale, either the "Buyer's Guide for Deferred
				Annuities - Variable," "Buyer's Guide for Deferred Annuities - Fixed," or the
				"Buyer's Guide for Deferred Annuities" approved by the National Association of
				Insurance Commissioners; use of the "Buyer's Guide for Deferred Annuities" is
				considered appropriate in all sales.
B. "Contract owner" means the owner named in
				the annuity contract or certificate holder in the case of a group annuity
				contract.
C. "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, 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. "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.
E. "Generic name" means a short title
				descriptive of the annuity contract being applied for or illustrated such as
				"single premium deferred annuity."
F. "Guaranteed elements" means 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.
G.
				"Illustration" means 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.
H. "Market Value Adjustment" or "MVA" feature
				is 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.
I. "Non-guaranteed elements" means 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.
J. "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.