NAC688A.135. Contract summary: Contents.

A contract summary must be a written statement describing the elements of the annuity contract and deposit fund and including as a minimum:

     1. A prominently placed title, to be followed by an identification of the annuity contract, deposit fund, or both, to which the statement applies.

     2. The name and address of the insurance agent or, if no agent is involved, a statement of the procedure to be followed in order to receive responses to inquiries regarding the contract summary.

     3. The full name and home office or administrative office address of the insurer which will issue the annuity contract or administer the deposit fund.

     4. The death benefits for the deposit fund and for the annuity contract during the deferred period, and the form of payment of the annuity. Where a choice of form of payment of the annuity is provided, this item must show the options guaranteed and the form of payment of the annuity selected for subsections 6, 7 and 9.

     5. If the contract does not provide cash surrender values, a prominent statement to that effect.

     6. The amount of the guaranteed annuity payments at the scheduled commencement of the annuity, based on the assumption that all scheduled considerations are paid and no prior withdrawals from or partial surrenders of the contract are made and no indebtedness to the insurer on the contract is incurred.

     7. An amount of annuity payments as in subsection 6 other than guaranteed payments, in amounts not greater than those based on:

     (a) The current dividend scale and the interest rate currently used to accumulate dividends under such contracts, or the current excess interest rate credited by the insurer; and

     (b) Current annuity purchase rates.

     8. For annuity contracts or deposit funds for which guaranteed cash surrender values at any duration are less than the total considerations paid, a prominent statement that the contract or fund may result in a loss if kept for only a few years, together with a reference to the schedule of guaranteed cash surrender values required by paragraph (c) of subsection 9.

     9. The following amounts, where applicable, for the first 5 contract years and representative contract years thereafter sufficient to clearly illustrate the patterns of considerations and benefits, including, but not limited to, the 10th and 20th contract years and at least one age between 60 and 65, inclusive, or the scheduled commencement of annuity payments, if any, whichever is earlier:

     (a) The gross annual or single consideration for the annuity contract;

     (b) Scheduled annual or single deposit for the deposit fund, if any;

     (c) The total guaranteed cash surrender value at the end of the year or, if no guaranteed cash surrender values are provided, the total guaranteed paid-up annuity at the end of the year. Values for a deposit fund must be shown separately from those for a basic contract; and

     (d) The total illustrative cash value or paid-up annuity at the end of the year, not greater in amount than that based on:

          (1) The current dividend scale and the interest rate currently used to accumulate dividends under such contracts or the current excess interest rate credited by the insurer; and

          (2) Current annuity purchase rates.

     10. For a contract summary which includes values based on the current dividend scale or the current dividend accumulation or excess interest rate, a statement that the values are illustrative and are not guaranteed.

     11. The date on which the contract summary is prepared. A dividend scale or excess interest rate which has been publicly declared by the insurer with an effective date not more than 2 months after the date of the declaration must be considered a current dividend scale or current excess interest rate.

     [Comm’r of Insurance, LH-7 § 5, eff. 2-6-80]