W. Va. Code R. § 114-11E-2

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 114-11E-2 - Applicability

2.1. This rule applies to all group and individual annuity contracts and certificates except:

2.1.a. Immediate and deferred annuities that do not contain non-guaranteed elements;

2.1.b.

2.1.b.1. Annuities used to fund:

2.1.b.1.A. An employee pension plan which is covered by the Employee Retirement Income Security Act ("ERISA");

2.1.b.1.B. A plan described by Sections 401(a), 401 (k) or 403(b) of the Internal Revenue Code, where the plan, for purposes of ERISA, is established or maintained by an employer;

2.1.b.1.C. A governmental or church plan defined in Section 414 or a deferred compensation plan of a state or local government or a tax exempt organization under Section 457 of the Internal Revenue Code; or

2.1.b.1.D. A non-qualified deferred compensation arrangement established or maintained by an employer or plan sponsor;

2.1.b.2. Notwithstanding paragraph 2.1.b.1, this rule shall apply to annuities used to fund a plan or arrangement that is funded solely by contributions an employee elects to make whether on a pre-tax or after-tax basis, and where the insurance company has been notified that plan participants may choose from among two (2) or more fixed annuity providers and there is a direct solicitation of an individual employee by a producer for the purchase of an annuity contract. As used in this subsection, direct solicitation may not include any meeting held by a producer solely for the purpose of educating or enrolling employees in the plan or arrangement;

2.1.c. Structured settlement annuities;

2.1.d. Charitable gift annuities;

2.1.e. Funding agreements;

2.1.f. Non-registered variable annuities issued exclusively to an accredited investor or qualified purchaser as those terms are defined by the Securities Act of 1933 ( 15 U.S.C. Section 77 a et seq.), the Investement Company Act of 1940 ( 15 U.S.C. Section 80a-1 et seq.), or the regulations promulgated under either of those acts, and offered for sale and sold in a transaction that is exempt from registration under the Securities Act of 1933 ( 15 U.S.C. Section 77 a et seq.); and

2.1.g. Transactions involving variable annuities and other registered products in compliance with Securities and Exchange Commission (SEC) rules and Financial Industry Regulatory Authority (FINRA) rules relating to disclosures and illustrations;

2.1.g.1. Notwithstanding subdivision 2.1.g, the delivery of the Buyer's Guide is required in sales of variable annuities, and when appropriate, in sales of other registered products.

2.1.g.2. Nothing in this subsection shall limit the Commissioner's ability to enforce the provisions of this rule or to require additional disclosure.

W. Va. Code R. § 114-11E-2