Section Ins 2.40 - Annuity contracts without life contingencies(1) PURPOSE. This section implements and interprets s. 632.66, Stats., by authorizing life insurers to issue annuity contracts without life contingencies and setting forth the conditions under which these annuity contracts may be issued.(2) SCOPE. This section applies to all annuity contracts without life contingencies and which are classified as life and disability insurance under s. Ins 6.75(1).(3) GRANT OF AUTHORITY. A life insurer that holds a valid certificate of authority to transact the business of life insurance and annuities in this state may issue in this state annuity contracts without life contingencies, subject to the following conditions: (a) No insurer may base the consideration to be paid to the insurer for the annuity contract without a life contingency upon the age or condition of health of the purchaser of the contract or any other person, or on any mortality or morbidity contingencies.(b) An insurer shall base the amounts guaranteed to be paid under an annuity contract without a life contingency upon reasonable assumptions as to investment income and expenses, determined in a manner which is equitable to all holders of such contracts.(c) An insurer may offer to the public an annuity contract without a life contingency only through licensed intermediaries or directly by the insurer.(4) APPLICABLE STATUTES AND ADMINISTRATIVE RULES. An annuity contract without a life contingency is deemed to be an annuity for purposes of chs. 600 to 645, Stats., and all rules adopted thereunder, including, but not limited to, ch. 623, Stats., ss. 631.20 to 631.27, Stats., and ss. Ins 2.07, 2.15, 6.05, and 51.80.Wis. Admin. Code Office of the Commissioner of Insurance Ins 2.40
Cr. Register, December, 1988, No. 396, eff. 1-1-89; correction in (4) made under s. 13.93(2m) (b) 7, Stats., Register, June, 1999, No. 522.