Arizona Laws 20-1242.01. Applicability and scope
A. This article applies to all group and individual annuity contracts and certificates except:
Terms Used In Arizona Laws 20-1242.01
- 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.
- Contract: A legal written agreement that becomes binding when signed.
- Nonguaranteed elements: means the premiums, credited interest rates, including any bonus, benefits, values, noninterest based credits, charges, or elements of formulas used to determine any of these, that are subject to company discretion and that are not guaranteed at issue. See Arizona Laws 20-1242
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- United States: includes the District of Columbia and the territories. See Arizona Laws 1-215
1. Registered or nonregistered variable annuities or other registered products.
2. Immediate and deferred annuities that contain no nonguaranteed elements.
3. Annuities used to fund:
(a) An employee pension plan that is covered by the employee retirement income security act of 1974 (29 United States Code § 1001 through 1461).
(b) A plan described by sections 401(a), 401(k) or 403(b) of the internal revenue code, where the plan, for purposes of the employee retirement income security act of 1974, is established or maintained by an employer.
(c) A governmental or church plan as defined in section 414 of the internal revenue code or a deferred compensation plan of a state or local government or a tax exempt organization pursuant to section 457 of the internal revenue code.
(d) A nonqualified deferred compensation arrangement established or maintained by an employer or plan sponsor.
4. Structured settlement annuities.
B. Notwithstanding subsection A of this section, this article applies if:
1. Annuities are used to fund a plan or arrangement that is funded solely by contributions an employee elects to make on a pretax or after tax basis.
2. The insurer has been notified that plan participants may choose from among two or more fixed annuity providers.
3. There is a direct solicitation of any individual employee by an insurance producer for the purchase of an annuity contract. For the purposes of this paragraph, direct solicitation does not include any meeting held by an insurance producer solely for the purpose of educating or enrolling employees in the plan or arrangement.