This part shall apply to all group and individual annuity contracts and certificates, except:

(1) Registered or non-registered variable annuities or other registered products;

Terms Used In Hawaii Revised Statutes 431:10D-602

  • 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.
  • Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
  • Non-guaranteed elements: means :

    (1) Premiums;

    (2) Credited interest rates, including any bonus;

    (3) Benefits;

    (4) Values;

    (5) Non-interest-based credits;

    (6) Charges; or

    (7) Elements of formulas used to determine any of the above, which are subject to company discretion and are not guaranteed at issue. See Hawaii Revised Statutes 431:10D-601

  • 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.
(2) Immediate and deferred annuities that contain no non-guaranteed elements;
(3) Annuities used to fund:

(A) An employee pension plan that is covered by the Employee Retirement Income Security Act;
(B) A plan under section 401 (a), 401 (k), or 403 (b) of the Internal Revenue Code, where the plan, for purposes of the Employee Retirement Income Security Act, is established or maintained by an employer;
(C) A governmental or church plan defined in section 414 of the Internal Revenue Code;
(D) A deferred compensation plan of a state or any of its political subdivisions under section 457 of the Internal Revenue Code;
(E) A tax-exempt organization under section 457 of the Internal Revenue Code; or
(F) A nonqualified deferred compensation arrangement established or maintained by an employer or plan sponsor;

provided that this part shall apply to annuities used to fund a plan or arrangement that is funded solely by contributions that an employee elects to make on a pre-tax or after-tax basis, and where the insurance company has been notified that plan participants may choose from among two 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.

For the purposes of this paragraph, “direct solicitation” does not include any meeting held by a producer solely for the purpose of educating or enrolling employees in the plan or arrangement;

(4) Structured settlement annuities;
(5) Funding agreements; and
(6) Charitable gift annuities issued pursuant to paragraphs (1) to (4) of section 431:1-204(c).

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