NAC688A.450. Applicability of provisions.

     1. Except as otherwise provided in subsections 2 and 3, NAC 688A.400 to 688A.475, inclusive, apply to:

     (a) Any solicitation, negotiation or procurement of annuities occurring within this State;

     (b) Any issuer of annuities, including, without limitation, fraternal benefit societies; and

     (c) Individual deferred annuities.

     2. NAC 688A.400 to 688A.475, inclusive, do not apply to:

     (a) Annuities used to pay for:

          (1) An employee pension or welfare benefit plan that is covered by the Employee Retirement and Income Security Act of 1974, 29 U.S.C. §§ 1001 et seq.

          (2) A plan established or maintained by an employer and authorized by 26 U.S.C. § 401(a), 401(k), 403(b), 408(k) or 408(p).

          (3) A governmental plan, as defined in 26 U.S.C. § 414(d).

          (4) A church plan, as defined in 26 U.S.C. § 414(e).

          (5) A government or church welfare benefit plan.

          (6) A deferred compensation plan of a state or local government or a tax exempt organization authorized by 26 U.S.C. § 457.

          (7) A nonqualified deferred compensation arrangement.

          (8) A settlement or an assumption of liabilities associated with litigation or any other process for dispute resolution related to a claim for compensation for personal injury.

          (9) A prepaid funeral contract.

          (10) A structured settlement annuity.

          (11) A funding agreement.

     (b) Immediate annuity contracts that do not contain any nonguaranteed elements.

     (c) Annuities purchased from an insurer in response to a direct-response solicitation and where the purchase was not based on a recommendation from the insurer.

     3. Notwithstanding the provisions of subsection 2, NAC 688A.400 to 688A.475, inclusive, apply to any annuity that is used to pay for a plan or arrangement which is paid for solely by contributions made by an employee on a pretax or after-tax basis and where participants are able to choose from among two or more fixed annuity providers.

     4. As used in this section:

     (a) “Funding agreement” means an agreement under which an insurer accepts and accumulates money for the purpose of making one or more future payments to a person that are not based on mortality or morbidity contingencies.

     (b) “Structured settlement annuity” means:

          (1) A qualified funding asset that meets the requirements of section 130(d) of the Internal Revenue Code, 26 U.S.C. § 130(d); or

          (2) An annuity that meets the requirements to be a qualified funding asset pursuant to section 130(d) of the Internal Revenue Code, 26 U.S.C. § 130(d), except that the annuity is not owned by an assignee under qualified assignment.

     (Added to NAC by Comm’r of Insurance by R076-05, eff. 2-23-2006)