N.J. Admin. Code § 11:4-59A.1

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

Section 11:4-59A.1 - Purpose and scope

(a) The purpose of this subchapter is to implement N.J.S.A. 17B:25-34 et seq. and 17B:30-1 et seq. to require insurers to establish a system to supervise recommendations and to set forth standards and procedures for recommendations to consumers that result in transactions involving annuity products so that the insurance needs and financial objectives of consumers at the time of the transaction are appropriately addressed.

(b) This subchapter shall apply to any annuity, both immediate and deferred, directly solicited to a consumer, except as specifically excluded in N.J.S.A. 17B:25-38a and this subchapter. This subchapter also shall apply to any recommendation to purchase, exchange, or replace an annuity made to a consumer by an insurance producer, or an insurer where no producer is involved, that results in the purchase, exchange, or replacement recommended.

(c) Unless otherwise specifically included, this subchapter shall not apply to transactions involving:

1. Direct response solicitations where there is no recommendation based on information collected from the consumer pursuant to this subchapter;

2. Contracts used to fund:

i. An employee pension or welfare benefit plan that is covered by the Employee Retirement and Income Security Act (ERISA), 29 U.S.C. §§ 1001 et seq.;

ii. A plan described by sections 401(a), 401(k), 403(b), 408(k) or 408(p) of the Internal Revenue Code (IRC), as amended, if established or maintained by an employer;

iii. A government or church plan defined in section 414 of the IRC, a government or church welfare benefit plan, or a deferred compensation plan of a state or local government or tax exempt organization under section 457 of the IRC;

iv. A nonqualified deferred compensation arrangement established or maintained by an employer or plan sponsor;

v. Settlements of or assumptions of liabilities associated with personal injury litigation or any dispute or claim resolution process;

vi. Formal prepaid funeral contracts; and

vii. Any transaction exempt under N.J.S.A. 17B:25-38.

(d) The requirements in this subchapter shall apply August 4, 2013 and thereafter.

N.J. Admin. Code § 11:4-59A.1