N.H. Admin. Code § Ins 401.09

Current through Register No. 50, December 12, 2024

Section Ins 401.09 - Group Annuity Contracts

(a) The following provisions shall be required in group annuity contracts:

(1) A provision that there shall be a grace period of 31 days within which any stipulated payment to be remitted by the policyholder to the insurer, falling due after one year from date of issue, may be made, subject to the option of the insurer, to an interest charge thereon, at a rate to be specified in the contract, for the number of days elapsing before such payment is received by the insurer;

(2) A provision specifying the document or documents constituting the entire contract between the parties that shall include the policy, the application, and any individual enrollment forms, if any; and

(3) A provision for the equitable adjustment of benefits payable under the policy if gender, age, service, salary or any other factor determining the amount of any stipulated payment or the amount or dates of payment of any benefit with respect to any annuitant covered thereby, has been misstated.

(b) A group shall be qualified for such annuity if it meets one of the following requirements:

(1) Under a contract issued to an employer if:

a. The stipulated payments are to be remitted by the employer; and

b. The contract permits all of the employees of such employer, or any specified class or classes thereof, to become annuitants; and

c. Any group of employees, under b. above, may include:

1. Retired employees;

2. Officers and managers as employees;

3. The employees of subsidiary or affiliated corporations of a corporation employer; and

4. The individual proprietors, partners and employees of affiliated individuals and firms controlled by the holder through stock ownership, contract, or otherwise;

(2) Under a contract issued to an employers' association that:

a. May, but shall not be required to, provide for the representation of annuitants on its board of directors;

b. Permits all of the employees of such employers, or of any specified class or classes thereof, to become annuitants; and

c. Requires that the stipulated payments under such contract shall be remitted by such employers' association;

(3) Under a contract issued to a labor union that:

a. Permits all of the members of such union, or of any specified class or classes thereof, to become annuitants; and

b. Requires that the stipulated payments under such contract shall be remitted by such union;

(4) Under a contract issued to an association or to trustees of a fund established by such an association, if the persons in the association have a common interest, calling, or profession and constitute a homogeneous group and the association:

a. Has a constitution and bylaws;

b. Is organized and maintained in good faith for purposes other than obtaining annuities; and

c. Permits all members of the association and their employees, or any specified class or classes thereof, to become annuitants; or

(5) Under a contract issued to the trustees of a fund established by an employer, or by an employers' association, or by one or more labor unions or by one or more employers and one or more labor unions if:

a. The trustees are deemed the contractholders;

b. The contract permits all of the employees of the employers or all of the members of the unions, or all of any class or classes thereof, to become annuitants;

c. The stipulated payments under such contract remitted by the trustees are not derived wholly from funds contributed by the person covered thereunder; and

d. The term "employees" may include retired employees, officers, and managers of an employer.

N.H. Admin. Code § Ins 401.09

#8726, eff 9-18-06; amd by #10195, eff 10-1-12

Amended by Volume XXXVII Number 15, Filed April 13, 2017, Proposed by #12126, Effective 3/8/2017, Expires 3/8/2027.