N.M. Admin. Code § 13.9.12.8

Current through Register Vol. 35, No. 24, December 23, 2024

Section 13.9.12.8 - WHEN DISCLOSURE SHALL BE MADE

A. Where the 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 a disclosure document and a buyer's guide.

B. Where the application for an annuity contract is taken by means other than in a face-to-face meeting, the applicant shall be sent both a disclosure document and a buyer's guide no later than five (5) business days after the completed application is received by the insurer.

(1) With respect to an application received as a result of a direct solicitation through the mail:

(a) providing a buyer's guide in a mailing inviting prospective applicants to apply for an annuity contract shall be deemed to satisfy the requirement that a buyer's guide be provided no later than five (5) business days after receipt of the application.

(b) providing a disclosure document in a mailing inviting a prospective applicant to apply for an annuity contract shall be deemed to satisfy the requirement that a disclosure document be provided no later than five (5) business days after receipt of the application.

(2) With respect to an application received via the internet:

(a) taking reasonable steps to make the buyer's guide available for viewing and printing on the insurer's website shall be deemed to satisfy the requirement that a buyer's guide be provided no later than five (5) business day[s] of receipt of the application;

(b) taking reasonable steps to make the disclosure document available for viewing and printing on the insurer's website shall be deemed to satisfy the requirement that a disclosure document be provided no later than five (5) business days after receipt of the application.

(3) A solicitation for an annuity contract provided in other than a face-to-face meeting shall include a statement that the proposed applicant may contact the insurance department of the state for a free annuity buyer's guide. In lieu of the foregoing statement, an insurer may include a statement that the prospective applicant may contact the insurer for a free annuity buyer's guide.

C. Where a buyer's guide and disclosure document are not provided at or before the time of application, a free look period of no less than fifteen (15) days shall be provided for the applicant to return the annuity contract without penalty. This free look shall run concurrently with any other free look provided under state law or rule.

N.M. Admin. Code § 13.9.12.8

7-1-00; Recompiled 11/30/01