Section R590-229-5 - Standards for the Disclosure Document and Buyer's Guide(1)(a) When an application for an annuity contract is taken in a face-to-face meeting, the applicant shall, at or before the time of application, be given both the disclosure document described in Subsection (2) and the appropriate buyer's guide described in Section R590-229-4.(b) When an application for an annuity contract is not taken in a face-to-face meeting, the applicant shall be sent both the disclosure document described in Subsection (2) and the appropriate buyer's guide described in Section R590-229-4 no later than five business days after the completed application is received by the insurer. (i) For an application received as a result of a solicitation through the mail:(A) providing a buyer's guide in the mailing inviting a prospective applicant to apply for an annuity contract shall satisfy the requirement that the appropriate buyer's guide is provided no later than five business days after receipt of the application; and(B) providing a disclosure document in the mailing inviting a prospective applicant to apply for an annuity contract shall satisfy the requirement that the disclosure document is provided no later than five business days after receipt of the application.(ii) For an application received via the internet: (A) making the appropriate buyer's guide available for viewing and printing on the insurer's website shall satisfy the requirement that the appropriate buyer's guide is provided no later than five business days after receipt of the application; and(B) making the disclosure document available for viewing and printing on the insurer's website shall satisfy the requirement that the disclosure document is provided no later than five business days after receipt of the application.(c) A solicitation for an annuity contract provided in other than a face-to-face meeting shall include a statement that the prospective applicant can obtain from the insurer a free annuity buyer's guide upon request.(2) Disclosure document. The following information shall be included in the disclosure document:(a) the generic name of the contract, the company product name, if different, the form number, and the fact that it is an annuity;(b) the insurer's name and address;(c) a description of the contract and its benefits, emphasizing its long-term nature, and examples, as appropriate, including:(i) the guaranteed, nonguaranteed and determinable elements of the contract, their limitations, and an explanation of how they operate;(ii) an explanation of the initial crediting rate, specifying any bonus or introductory portion, the duration of the rate and the fact that the rate may change from time to time and is not guaranteed;(iii) periodic income options, both on a guaranteed and non-guaranteed basis;(iv) any value reduction caused by a withdrawal from or surrender of the contract;(v) how the value of the contract can be accessed;(vi) the death benefit, if available, and how it is calculated;(vii) a summary of the federal tax status of the contract and any penalty applicable on a withdrawal of a value from the contract; and(viii) the impact of any rider, such as a long-term care rider;(d) the specific dollar amount or percentage of any charge or fee shall be listed with an explanation of how it applies; and(e) information about the current guaranteed rate for a new contract that contains a clear notice that the rate is subject to change.(3) An insurer shall define terms used in the disclosure document in language that is understandable by a typical person within the segment of the public to which the disclosure document is directed.Utah Admin. Code R590-229-5
Amended by Utah State Bulletin Number 2023-08, effective 4/7/2023