Section R590-229-3 - DefinitionsTerms used in this rule are defined in Section 31A-1-301. Additional terms are defined as follows:
(1) "Buyer's guide" means a document that contains, and is limited to, the language contained in the "Buyer's Guide for Deferred Annuities," "Buyer's Guide for Deferred Annuities - Fixed," and "Buyer's Guide for Deferred Annuities - Variable" as adopted and periodically amended by the NAIC.(2) "Contract owner" means the owner named in the annuity contract or certificate holder in the case of a group annuity contract.(3)(a) "Determinable element" means an element derived from a process or method that is guaranteed at issue and not subject to company discretion, but where the value or amount cannot be determined until some point after issue.(b) An element is considered determinable if all the underlying elements that go into its calculation are either guaranteed or determinable.(4)(a) "Direct solicitation" means a personalized solicitation to a specific individual through an insurer or producer that is not a direct-response solicitation.(b) "Direct solicitation" does not include a group meeting held by a producer solely educating or enrolling individuals or, when initiated by an individual member of the group, assisting with the selection of investment options offered by a single insurer in connection with enrolling that individual.(5) "Direct-response solicitation" means a solicitation through a sponsoring or endorsing entity or individually solely through mail, telephone, the internet, or other mass communication media.(6) "Disclosure document" means a document that describes, outlines, and specifies the required information to be provided to a prospective applicant.(7) "Funding agreement" means an agreement for an insurer to accept and accumulate funds and to make one or more payments at a future date in amounts that are not based on a mortality or morbidity contingency.(8) "Generic name" means a short title that describes the premium and benefit patterns of an annuity contract, such as "single premium deferred annuity."(9)(a) "Guaranteed element" means any of the following elements that are guaranteed and determined at issue:(ii) a credited interest rate with applicable bonus;(v) a non-interest-based credit;(vii) an element of a formula used to determine an element in Subsections (9)(a)(i) through (9)(a)(vi).(b) An element is considered guaranteed if all the underlying elements that go into its calculation are guaranteed.(10)(a) "Nonguaranteed element" means any of the following elements that are subject to company discretion and are not guaranteed or not determined at issue: (ii) a credited interest rate with applicable bonus;(v) a non-interest-based credit;(vii) an element of a formula used to determine an element in Subsections (10)(a)(i) through (10)(a)(vi).(b) An element is considered nonguaranteed if any underlying element that goes into its calculation is nonguaranteed.(11) "Structured settlement annuity" means an annuity that is or would be a "qualified funding asset" as defined in Section 130(d), Internal Revenue Code, but for the fact that it is not owned by an assignee under a qualified assignment.Utah Admin. Code R590-229-3
Amended by Utah State Bulletin Number 2023-08, effective 4/7/2023