Weekly Tip: Amendments to the Additional Standards for Bonus Benefits (for Individual Deferred Non-Variable Annuities)

 

Weekly Tips

Amendments to the Additional Standards for Bonus Benefits (for Individual Deferred Non-Variable Annuities)

4/16/2015

This week we thought that we would provide additional information regarding the clarification amendments of the Additional Standards for Bonus Benefits (for Individual Deferred Non-Variable Annuities) and the Individual Immediate Non-Variable Annuity Contract Standards. 

A sentence was added to the Scope of the Additional Standards for Bonus Benefits (for Individual Deferred Non-Variable Annuities) specifically stating that products with a zero bonus are non-bonus products and not subject to these Uniform Standards. Generally, companies can accommodate a product that may contain a bonus or not as follows:  1)separate contract/policies - one that incorporates the bonus and one that has no bonus; or 2)adding the bonus feature via rider. 

The amendments made to the Individual Immediate Non-Variable Annuity Contract Standards clarify that these standards are subject to the same requirements as found in the Participating Contract section of the Individual Deferred Paid-Up Non-Variable Annuity Contract Standards.  These amendments were made to be consistent since the Insurance Compact required the contracts to meet these provisions.   

If you have any questions regarding the amendments to the Additional Standards for Bonus Benefits (for Individual Deferred Non-Variable Annuities) and the Individual Immediate Non-Variable Annuity Contract Standards or this Weekly Tip, please reach out to Karen Givens.   If you have any questions regarding the Insurance Compact, please contact the Office.