Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 25 - LIFE AND ANNUITIES › Part 6 - Annuity Disclosure › Section 230-RICR-20-25-6.4 - Definitions

Current through June 14, 2024
A. As used in this Part:
1. "Buyer's guide" means the National
				  Association of Insurance Commissioners (NAIC) approved Annuity Buyer's
				  Guide.
2. "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.
3. "Contract owner" means the owner named in
				  the annuity contract or certificate holder in the case of a group annuity
				  contract.
4. "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.
5. "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.
6. "Generic name" means a short title
				  descriptive of the annuity contract being applied for or illustrated such as
				  "single premium deferred annuity."
7. "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.
8.
				  "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.
9. "Insurance Commissioner" or "Commissioner"
				  means the Director of the Department of Business Regulation or his or her
				  designee.
10. "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.
11. "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.
12. "Structured settlement annuity" means a
				  "qualified funding asset" as defined in section  130(d)   of the Internal Revenue
				  Code (26 U.S.C. §
												130(d)) 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.