Iowa Annuity Disclosure and Deferred Annuity Buyer's Guide

TERRY E. BRANSTAD NICK GERHART GOVERNOR COMMISSIONER OF INSURANCE KIM REYNOLDS LT. GOVERNOR TWO RUAN CENTER / 601 LOCUST STREET / 4th FLOOR / DES MOINES, IOWA 50309-3738 Telephone 515-281-5705 / Facsimile 515-281-3059 / http://www.iid.state.ia.us Bulletin 13-03 To: Persons Licensed to Sell Annuities in Iowa From: Nick Gerhart, Iowa Insurance Commissioner RE: Iowa Annuity Disclosure Rule (Sections 191-15.61 et seq, Iowa Administrative Code) and Deferred Annuity Buyer’s Guide Date: October 21, 2013 The Iowa Insurance Division (IID) adopted the NAIC (National Association of Insurance Commissioners) Annuity Disclosure Model Regulation in its rules, effective April 11, 2012 with compliance effective January 31, 2012. Section 191-15.64 requires that an annuity buyer’s guide be provided to purchasers of deferred annuities that are subject to the rules, in most instances, deferred variable annuities and deferred fixed annuities. Section 191-15.63 defines an annuity buyer’s guide as an NAIC approved annuity buyer’s guide. The NAIC at its 2013 summer meeting adopted three new versions of the deferred annuity buyers guide; “Buyer’s Guide for Deferred Annuities Variable”, “Buyer’s Guide for Deferred Annuities Fixed” and ”Buyer’s Guide for Deferred Annuities”. These versions are now available from the NAIC in electronic or paper form. In IID Bulletin 13-01, the IID stated that it would establish a deadline for the use of the new versions of the NAIC Buyer’s Guides for the sale of fixed annuities. The Bulletin also stated that no NAIC Buyer’s Guides would be required for the sale of variable annuities until the IID announced a deadline for use in the sale of variable annuities. The Division will consider companies and producers selling fixed annuities, including fixed indexed annuities, to have met the requirements of Section 191-15.64 if the companies and producers use an appropriate version of the new NAIC deferred annuity buyer’s guide or the older version of the NAIC deferred annuity buyer’s guide through March 31, 2014. After March 31, 2014, companies and producers selling any fixed annuity, including any fixed indexed annuity, AND companies and producers selling variable annuities or other securities registered products must use an appropriate version of the new NAIC annuity buyer’s guide as required by the Iowa rules. Companies and producers are encouraged to use the appropriate newer versions as soon as possible. The combination version is acceptable in all instances. The variable annuity version is acceptable in sales of variable annuities and any other securities registered annuities that are covered by the rules. The fixed version is acceptable in sales of fixed annuities including fixed indexed annuities. If you have questions, please contact Mark Crandell at mark.crandell@iid.iowa.gov.