Section R590-229-2 - Purpose and Scope(1) The purpose of this rule is to provide a standard for the disclosure of information in connection with the sale of an annuity contract to protect a consumer and foster consumer education.(2) This rule applies to an insurer when offering an individual or group annuity contract or certificate except:(a) a registered or non-registered variable annuity or other registered product;(b) a structured settlement annuity;(c) a funding agreement; or(d) an annuity used to fund:(i) an employee pension plan that is covered by the Employee Retirement Income Security Act (ERISA);(ii) a plan described by Section 401(a), 401(k), or 403(b) of the Internal Revenue Code where the plan is established or maintained by an employer;(iii) a government or church plan defined in Section 414, Internal Revenue Code;(iv) a deferred compensation plan of a state, a local government, or a tax-exempt organization under Section 457, Internal Revenue Code; or(v) a nonqualified deferred compensation arrangement established or maintained by an employer or plan sponsor.(3) Notwithstanding Subsection (2)(d), this rule applies to an annuity used to fund a plan or arrangement that: (a) is funded only by contributions an employee elects to make on a pre-tax or after-tax basis; and(b) where there is direct solicitation of an individual employee by a producer for the purchase of an annuity contract.(4) An immediate or deferred annuity that does not contain a nonguaranteed element is exempt from the disclosure document requirement of this rule.Utah Admin. Code R590-229-2
Amended by Utah State Bulletin Number 2023-08, effective 4/7/2023Amended by Utah State Bulletin Number 2024-22, effective 11/7/2024