Iowa Administrative Code › Agency 191 - Insurance Division › Unfair Trade Practices › Chapter 15 - Unfair Trade Practices › Rule 191-15.63 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
For purposes of these rules:
"Buyer's Guide"
means the National
				  Association of Insurance Commissioners' approved Annuity Buyer's Guide.
"Contract owner"
means the owner named in
				  the annuity contract or the certificate holder in the case of a group annuity
				  contract.
"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 the contract is issued. 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 elements. 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.
"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.
"Generic name"
means a short title
				  descriptive of the annuity contract for which application is made or an
				  illustration is prepared, such as "single premium deferred annuity."
"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 elements 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.
"Illustration"
means a personalized
				  presentation or depiction that is prepared for and provided to an individual
				  consumer and that includes nonguaranteed elements of an annuity contract over a
				  period of years.
"Market value adjustment"
or
"MVA"
is a positive or negative adjustment that may be applied
				  to the account value or cash value of the annuity upon withdrawal, surrender,
				  contract annuitization or death benefit payment based either on 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.
"Nonguaranteed 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 elements 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.
"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.