New Jersey Statutes 17B:25-35. Definitions relative to certain annuity products
Terms Used In New Jersey Statutes 17B:25-35
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- person: includes corporations, companies, associations, societies, firms, partnerships and joint stock companies as well as individuals, unless restricted by the context to an individual as distinguished from a corporate entity or specifically restricted to one or some of the above enumerated synonyms and, when used to designate the owner of property which may be the subject of an offense, includes this State, the United States, any other State of the United States as defined infra and any foreign country or government lawfully owning or possessing property within this State. See New Jersey Statutes 1:1-2
- State: extends to and includes any State, territory or possession of the United States, the District of Columbia and the Canal Zone. See New Jersey Statutes 1:1-2
“Annuity” means an annuity as defined by N.J.S. 17B:17-5 directly solicited to a consumer.
“Consumer” means a natural person who resides in this State.
“Deferred annuity” means an annuity with the first income payment due no earlier than one year from the date of issue and the annuity is not an immediate annuity.
“Determinable element” means a benefit, value, credit, or charge under an annuity that is guaranteed at issue, but its amount is not determined until after issue.
“Direct-response solicitation” means a solicitation solely through mail, telephone, the Internet, or other mass communication media.
“Fixed annuity” means an annuity under which the charges and other considerations provided for the annuity, less any amount charged against these considerations, earns interest at a rate: (1) set by the insurer; or (2) in a manner specified in the annuity, which manner may include, but is not limited to, the use of a stock market or other outside index.
“Generic name” means a short title which is descriptive of the charges and benefit patterns of an annuity, or endorsement or rider to the annuity.
“Guaranteed element” means a benefit, value, credit, or charge under an annuity that is guaranteed and the amount determined at issue.
“Immediate annuity” means an annuity with the first income payment due not more than 13 months from the date of issue.
“Insurer” means any corporation, association, partnership, reciprocal exchange, interinsurer, Lloyd’s insurer, fraternal benefit society or other person licensed to engage in the business of insurance in this State.
“Insurance producer” means a person licensed to sell, solicit, or negotiate insurance pursuant to the “New Jersey Insurance Producer Licensing Act of 2001,” P.L.2001, c.210 (C. 17:22A-26 et al.).
“Negotiate” means the act of conferring directly with or offering advice directly to a consumer as the purchaser or prospective purchaser of a particular annuity concerning any of the substantive benefits, terms or conditions of the annuity, provided that the person engaged in that act either: sells annuities or obtains annuities from insurers for purchasers.
“Non-guaranteed element” means a benefit, value, credit, or charge under an annuity that is not guaranteed and the amount not determined at issue.
“Owner” means the person to whom an annuity is presently or prospectively payable by the terms of the annuity, except when the annuity declares some other person to be the owner thereof, or the individual certificate holder in the case of a group annuity.
“Sell” means to exchange an annuity by any means, for money or its equivalent, on behalf of an insurer.
“Solicit” means attempting to sell an annuity or asking or urging a consumer to apply for a particular annuity from a particular insurer.
“Variable annuity” means an annuity under which the insurer invests, for the annuity owner, the charges and other considerations provided for the annuity, less any amount charged against these considerations, into a separate account, based upon the annuity owner’s stated level of investment risk, and which annuity may lose some or all of the owner’s investment.
L.2008, c.88, s.2.