N.J. Admin. Code § 11:4-45.5

Current through Register Vol. 56, No. 24, December 18, 2024

Section 11:4-45.5 - Individual variable annuity forms; reporting requirements

(a) Any periodic report for use with an individual variable annuity shall satisfy, at a minimum, the following requirements:

1. The report shall be provided at least annually, and shall show the values by fund, sub-account and division (including, but not limited to, dollar and unit values) applicable at both the beginning and end of the period covered by the report;

2. The report shall list the number of units and dollar value of a unit not more than two months prior to the date of the mailing of the report;

3. For the period prior to annuitization, the report shall list the number of units and the unit value by fund, sub-account or division. The units and unit value shall not be listed in the aggregate;

4. Except as provided in (a)5 below, for the period prior to annuitization, the report shall record the following transactions by date:

i. Premium receipt;

ii. Loans, incurred and repaid;

iii. Partial surrenders or withdrawals;

iv. Transfers; and

v. Charges;

5. Alternatively to (a)4, for any transactions for which transaction or confirmation notices are sent, the report may show an aggregate amount for each such type of transaction, except that transfers need not be shown;

6. For forms that provide a fixed account or other interest option, all interest credits, rates, and the amounts to which such rates apply for the period covered by the report shall be recorded in a periodic report, or transaction or confirmation notice.

i. In the case of policies with "buckets" or "generations" of interest, the Commissioner shall waive the requirement set forth in (a)6 above if:

(1) The report states that the insurer will provide interest rates and crediting methodology to the owner upon request and free of charge; and

(2) The information available upon request shall record all interest rates, together with the amounts to which such rates apply.

ii. Notwithstanding any waiver granted pursuant to (a)6i above, the report shall record the interest rates and credits applied to monies newly allocated to a fixed account option during the reporting period, unless such interest rates and credits are provided by the insurer in a transaction or confirmation notice at the time of allocation; and

7. The report sent after annuitization for variable payments shall provide a reconciliation of annuity payments. The annuity unit values shall be listed by fund, sub-account or division. The units and unit values shall not be listed in the aggregate. For annuitization to fixed payments, no report is required.

N.J. Admin. Code § 11:4-45.5

Amended by R.1998 d.337, effective 7/6/1998.
See: 30 New Jersey Register 275(a), 30 New Jersey Register 2492(a).
In (a), inserted 4v, substituted "or" for "and" following "transaction" in 5, rewrote the introductory paragraph and i(3) in 6, and inserted references to credits in 6ii.
Amended by R.2000 d.130, effective 3/20/2000.
See: 31 New Jersey Register 3910(a), 32 New Jersey Register 1024(a).
Rewrote (a)6.