Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › ANNUITY AND DEPOSIT FUND DISCLOSURE REGULATION › Section 284-23-330 - Contract summary, contents

Current through Register Vol. 24-14, July 15, 2024
For the purposes of this regulation, contract summary means a
				  written statement describing the elements of the annuity contract and deposit
				  fund, including but not limited to:
(1) A prominently placed title as follows:
				Statement of benefit information. (This shall be followed by an identification
				of the annuity contract or deposit fund, or both, to which the statement
				applies.)
(2) The name and address
				of the insurance agent or, if no agent is involved, a statement of the
				procedure to be followed in order to receive responses to inquiries regarding
				the contract summary.
(3) The full
				name and home office or administrative office address of the insurer which will
				issue the annuity contract or administer the deposit fund.
(4) The death benefits for the deposit fund,
				and for the annuity contract during the deferred period, and the form of the
				annuity payout. In the case where a choice of annuity payout form is provided,
				this item shall show the payout options guaranteed and the form of annuity
				payout selected for subsections (6), (7) and (9) of this section.
(5) A prominent statement that the contract
				does not provide cash surrender values if such is the case.
(6) The amount of the guaranteed annuity
				payments at the scheduled commencement of the annuity, based on the assumption
				that all scheduled considerations are paid and there are no prior withdrawals
				from or partial surrenders of the contract and no indebtedness to the insurer
				on the contract.
(7) On the same
				basis as for subsection (6) except for guarantees, illustrative annuity
				payments not greater in amount than those based on first, the current dividend
				scale and the interest rate currently used to accumulate dividends under such
				contracts, or the current excess interest rate credited by the insurer, and
				second, the current annuity purchase rates. A dividend scale or excess interest
				rate which has been publicly declared by the insurer with an effective date not
				more than two months subsequent to the date of declaration shall be considered
				a current dividend scale or current excess interest rate.
(8) For annuity contracts or deposit funds
				for which guaranteed cash surrender values at any duration are less than the
				total considerations paid, a prominent statement that such contractor fund may
				result in loss if kept for only a few years, together with a reference to the
				schedule of guaranteed cash surrender values required by subsection (9)(c) of
				this section.
(9) The following
				amounts, where applicable, for the first five contract years and representative
				contract years thereafter sufficient to clearly illustrate the patterns of
				considerations and benefits, including but not limited to the tenth and
				twentieth contract years and at least one age from sixty through sixty-five or
				the scheduled commencement of annuity payments, if any, whichever is earlier:
(a) The gross annual or single consideration
				for the annuity contract.
(b)
				Scheduled annual or single deposit for the deposit fund, if any.
(c) The total guaranteed cash surrender value
				at the end of the year, or, if no guaranteed cash surrender values are
				provided, the total guaranteed paid-up annuity at the end of the year. Values
				for a deposit fund must be shown separately from those for a basic
				contract.
(d) The total
				illustrative cash values or paid-up annuity at the end of the year, not greater
				in amount than that based on first, the current dividend scale and the interest
				rate currently used to accumulate dividends under such contracts or the current
				excess interest rate credited by the insurer, and second, the current annuity
				purchase rates. A dividend scale or excess interest rate which has been
				publicly declared by the insurer with an effective date not more than two
				months subsequent to the date of declaration shall be considered a current
				dividend scale or current excess interest rate.