Missouri Code of State Regulations › Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE › Division 400 - Life, Annuities and Health › Chapter 5 - Advertising and Material Disclosures › Section 20 CSR 400-5.800 - Annuity Disclosure

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule effectuates and aids in the
				  interpretation of sections 375.141.1(8),
				  375.143, and
				  375.936(4),
				  (6), and (7), RSMo. The purpose of this rule is to provide standards for the
				  disclosure of certain minimum information about annuity contracts to protect
				  consumers and foster consumer education. This rule specifies the minimum
				  information which must be disclosed, the method for disclosing it, and the use
				  and content of illustrations, if used, in connection with the sale of annuity
				  contracts. The goal of this rule is to ensure that purchasers of annuity
				  contracts understand certain basic features of annuity contracts. This rule
				  implements the National Association of Insurance Commissioners (NAIC) Annuity
				  Disclosure Guideline Regulation #245.
(1) Applicability and Scope. This rule
				applies to all group and individual annuity contracts and certificates except-
(A) Immediate and deferred annuities that
				contain no non-guaranteed elements;
(B)
(Reserved)
1. Annuities used to fund-
A. An employee pension plan which is covered
				by the Employee Retirement Income Security Act (ERISA);
B. A plan described by Sections 401(a),
				401(k), or 403(b) of the
Internal Revenue Code
, where the
				plan, for purposes of ERISA, is established or maintained by an
				employer;
C. A governmental or
				church plan defined in Section 414 or a deferred compensation plan of a state
				or local government or a tax exempt organization under Section 457 of the
Internal Revenue Code
; or
D. A nonqualified deferred compensation
				arrangement established or maintained by an employer or plan sponsor.
2. Notwithstanding paragraph
				(1)(B)1., the rule shall apply to annuities used to fund a plan or arrangement
				that is funded solely by contributions an employee elects to make whether on a
				pre-tax or after-tax basis, and where the insurance company has been notified
				that plan participants may choose from among two (2) or more fixed annuity
				providers and there is a direct solicitation of an individual employee by a
				producer for the purchase of an annuity contract. As used in this subsection,
				direct solicitation shall not include any meeting held by a producer solely for
				the purpose of educating or enrolling employees in the plan or
				arrangement;
(C)
				Non-registered variable annuities issued exclusively to an accredited investor
				or qualified purchaser as those terms are defined by the Securities Act of 1933
				( 15
				U.S.C. Section 77a et seq.), the Investment
				Company Act of 1940 (
				15 U.S.C. Section
				80a-1 et seq.), or the regulations
				promulgated under either of those acts, and offered for sale and sold in a
				transaction that is exempt from registration under the Securities Act of 1933 (
				15
				U.S.C. Section 77a et seq.);
(D)
(Reserved)
1. Transactions involving variable annuities
				and other registered products in compliance with Securities and Exchange
				Commission (SEC) rules and Financial Industry Regulatory Authority (FINRA)
				rules relating to disclosures and illustrations, provided that compliance with
				section (3) of this rule shall be required after January 1, 2014, unless, or
				until such time as, the SEC has adopted a summary prospectus rule or FINRA has
				approved for use a simplified disclosure form applicable to variable annuities
				or other registered products.
2.
				Notwithstanding paragraph (1)(D)1., the delivery of the Buyer's Guide is
				required in sales of variable annuities, and when appropriate, in sales of
				other registered products.
3.
				Nothing in this rule shall limit the director's ability to enforce the
				provisions of this rule or to require additional disclosure;
(E) Structured settlement
				annuities.