Opinion ID: 1238858
Heading Depth: 3
Heading Rank: 1

Heading: Clear statutory language shows the Oklahoma Legislature intended to exclude unallocated annuity contracts from coverage.

Text: Section 3(b)(1) of the 1985 Model Act provides coverage for unallocated annuity contracts, including GICs, which it defines as any annuity contract or group annuity certificate which is not issued to and owned by an individual, except to the extent of any annuity benefits guaranteed to an individual by an insurer under such contract or certificate. Life and Health Guaranty Association Model Act § 3(b)(1) (National Association of Insurance Commissioners 1985) (1985 Model Act). The Oklahoma Legislature used this same definition in subsection 2025(B)(2)(g) of the 1991 Act and excluded unallocated annuity contracts from coverage. Subsection 2025(B)(2)(g) of the 1991 Act provides: This act shall not provide coverage for ... any annuity contract or group annuity certificate which is not issued to and owned by an individual, except to the extent of any annuity benefits guaranteed to an individual by an insurer under such contract or certificate .... It would have been difficult for the Oklahoma Legislature to have been more explicit that it intended to exclude unallocated annuity contracts (GICs) from coverage. Clearly the GICs were intended to be excluded from coverage by the 1991 Oklahoma Act. Bennet v. Virginia Life, Accident and Sickness Insurance Guaranty Ass'n, 251 Va. 382, 468 S.E.2d 910 (1996), is directly on point. Section 38.2-1700(C)(5) of chapter 17 of the Virginia statutes exempted from coverage [a]ny contract or certificate which is not issued to and owned by an individual, except to the extent of ... any annuity benefits guaranteed to an individual by an insurer under such contract or certificate. This is the same language used in the 1991 Oklahoma Act. The Virginia Supreme Court held that, under this provision, GICs were not covered by Virginia's Guaranty Act. Likewise, GICs are excepted from coverage under the Oklahoma Act.