Section 3 AAC 26.789 - DefinitionsIn 3 AAC 27.770 - 3 AAC 26.789,
(1) "annuity" has the meaning given in AS 21.12.055 with respect to an insurance product that is individually solicited, whether the product is classified as an individual or group annuity; (2) "cash compensation" means any discount, concession, fee, service fee, commission, sales charge, loan, override, or cash benefit received by a producer in connection with the recommendation or sale of an annuity from an insurer, intermediary, or directly from the consumer; (3) "consumer profile information" means information that is reasonably appropriate to determine whether a recommendation addresses the consumer's financial situation, insurance needs, and financial objectives, including at a minimum the following: (C) financial situation and needs, including debts and other obligations; (D) financial experience; (E) financial objectives; (F) intended use of the annuity; (G) financial time horizon; (H) existing assets or financial products, including investment, annuity, and insurance holdings; (K) risk tolerance, including willingness to accept non-guaranteed elements in the annuity; (M) financial resources used to fund the annuity; and (4) "continuing education credit hour" has the meaning given in 3 AAC 23.208; (5) "direct-response solicitation" means a solicitation solely through mail, telephone, the Internet, or other mass communication media; (6) "FINRA" means the Financial Industry Regulatory Authority or a succeeding agency; (7) "insurer" means a company required to be licensed under AS 21.12.055 to provide insurance products, including annuities; (8) "intermediary" means an entity contracted with an insurer or with another entity contracted with an insurer to facilitate the sale of the insurer's annuities by producers; (9) "material conflict of interest" means (A) a financial interest of the producer in the sale of an annuity that a reasonable person would expect to influence the impartiality of a recommendation; (B) does not include cash compensation or non-cash compensation; (10) "non-cash compensation" means any form of compensation that is not cash compensation, including health insurance, office rent, office support, and retirement benefits. (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; for purposes of this paragraph an element is considered non-guaranteed if any of the underlying non-guaranteed elements are used in its calculation; (12) "producer" has the meaning given to "insurance producer" in AS 21.27.990, including for purposes of 3 AAC 26.770 - 3 AAC 26.789 an insurer where no producer is involved; (13) "recommendation" means (A) advice provided by a producer to an individual consumer that was intended to result or does result in a purchase, exchange, or replacement of an annuity in accordance with that advice; (B) does not include general communication to the public, generalized customer services assistance, or administrative support, general educational information and tools, prospectuses, or other product and sales material; (14) "replacement" means a transaction in which a new annuity is to be purchased, and it is known or should be known to the proposing producer, or to the proposing insurer, regardless of whether a producer is involved, that by reason of the transaction, an existing annuity or other insurance policy has been or is to be any of the following: (A) lapsed, forfeited, surrendered, or partially surrendered, assigned to the replacing insurer, or otherwise terminated; (B) converted to reduced paid up insurance, continued as extended term insurance, or otherwise reduced in value by the use of nonforfeiture benefits or other policy values; (C) amended so as to effect either a reduction in (ii) the term for which coverage would otherwise remain in force or for which benefits would be paid; (D) reissued with any reduction in cash value; or (E) used in a financed purchase; (15) "SEC" means the United States Securities and Exchange Commission.Eff. 7/25/2008, Register 187; am 10/16/2011, Register 200; am 1/1/2014, Register 208, January 2014; am 11/23/2022, Register 244, January 2023Authority:AS 21.06.090
AS 21.27.350
AS 21.36.030
AS 21.27.990
AS 21.36.020
AS 21.36.040