Section 50-24.1-02.8 - Transfers involving annuities1. For purposes of this section, "annuity" means a policy, certificate, contract, or other arrangement between two or more parties under which one party pays money or other valuable consideration to the other party in return for the right to receive payments in the future.2. The purchase of an annuity on or after February 8, 2006, or the selection or alteration on or after February 8, 2006, of a payment option for an annuity purchased at any time, is a disqualifying transfer of an asset for purposes of this chapter unless: a. The state is named as the remainder beneficiary in the first position for at least the total amount of medical assistance paid on behalf of the annuitant or the state is named in the second position after the community spouse or minor or disabled child and is named in the first position if the community spouse or a representative of the minor or disabled child disposes of any remainder for less than fair market value;b. The annuity is purchased from an insurance company or other commercial company that sells annuities as part of the normal course of business;c. The annuity is irrevocable and neither the annuity nor payments due under the annuity may be assigned or transferred;d. The annuity provides substantially equal monthly payments of principal and interest and does not have a balloon or deferred payment of principal or interest. Payments will be considered substantially equal if the total annual payment in any year varies by five percent or less from the payment in the previous year; and e. The annuity will return the full principal and interest within the purchaser's life expectancy as determined in accordance with actuarial publications of the office of the chief actuary of the social security administration.3. Except for the provision in subdivision a of subsection 2, this section does not apply to: a. An annuity described in subsection b or q of section 408 of the Internal Revenue Code of 1986; orb. An annuity purchased with proceeds from: (1) An account or trust described in subsection a, c, or p of section 408 of the Internal Revenue Code of 1986;(2) A simplified employee pension within the meaning of subsection k of section 408 of the Internal Revenue Code of 1986; or(3) A Roth IRA described in section 408A of the Internal Revenue Code of 1986.Amended by S.L. 2019, ch. 408 (HB 1115),§ 14, eff. 7/1/2019.