SECTION 2. Ins. 2.14(4)(g)1. is repealed.
SECTION 3. Ins. 2.15(3)(b)1. and 2. are amended to read:
Ins 2.15(b) This section shall not apply to:
1. Variable annuities Non-registered variable annuities issued exclusively to an accredited investor or qualified purchaser as those terms are defined by the Securities Act of 1933 (15 U.S.C. Section 77a et seq.), the Investment Company Act of 1940 (15 U.S.C. Section 80a-1 et seq.), or the regulations promulgated under either of those acts, and offered for sale and sold in a transaction that is exempt from registration under the Securities Act of 1933 (15 U.S.C. Section 77a et seq.); 2. Contracts registered with the federal securities and trade commission Transactions involving variable annuities and other registered products in compliance with Securities and Exchange Commission (SEC) rules and Financial Industry Regulatory Authority (FINRA) rules relating to disclosures and illustrations;
a. Notwithstanding subdivision 2. above, the delivery of the applicable Buyer’s Guide is required in sales of variable annuities and, when appropriate, in sales of other registered products.
b. Nothing in this subdivision will limit the Commissioner’s ability to enforce the provisions of this regulation or to require additional disclosure.
SECTION 4. Ins. 2.15(4)(c) is amended to read:
Ins 2.15(4)(c) “Wisconsin Buyer’s Guide to Annuities” means the document which contains, and is limited to, the language set forth in Appendix I to this section.“Buyer’s Guide” means one of the following buyer’s guides adopted by the National Association of Insurance Commissioners (NAIC):
1. With respect to sales of fixed or fixed indexed annuities, either:
a. The Buyer’s Guide for Deferred Annuities (2013); or
b. The Buyer’s Guide for Deferred Annuities Fixed (2013).
2. With respect to sales of variable annuities, either:
a. The Buyer’s Guide for Deferred Annuities (2013); or
b. The Buyer’s Guide for Deferred Annuities Variable (2013).
SECTION 5. Ins. 2.15(8) is amended to read:
Ins 2.15(8) Disclosure Requirements. (a) The insurer and its intermediaries shall provide, to all prospective purchasers of any contract or arrangement subject to this section, a copy of the current edition of the Wisconsin Buyer’s Guide to Annuities a buyer’s guide and a properly completed Preliminary Contract Summary or Contract Summary prior to accepting the applicant’s initial consideration for the annuity contract, or, in the case of a rider or provision, prior to acceptance of the applicant’s initial consideration for the associated insurance policy or annuity contract. Insurers which do not market contracts through an intermediary may provide the Contract Summary, and the Wisconsin Buyer’s Guide to Annuities a buyer’s guide at the point of contract delivery provided they:
1. Guarantee to the contractholder the right to return the contract for a full refund of premium any time during a 30 day period commencing on the date such contract holder receives the Contract Summary and the Wisconsin Buyer's Guide to Annuities a buyer’s guide;
2. Alert the prospective contractholder, in advertisements or direct mail solicitations, of his or her right to obtain a copy of the Wisconsin Buyer's Guide to Annuities buyers guide and a Preliminary Contract Summary prior to the sale.
(b) The insurer and its intermediaries shall provide a Contract Summary upon delivery of the contract, if it has not been delivered beforehand;
(c) The insurer and its intermediaries shall provide a Wisconsin Buyer's Guide to Annuities buyer’s guide and a Contract Summary to individual prospective purchasers upon reasonable request;
(d) Any statement provided subsequent to sale to a contractholder which purports to show the then current value of an arrangement subject to this section shall show the then current guaranteed cash surrender value or, if no guaranteed cash surrender value is provided the then current guaranteed paid-up annuity.
SECTION 6. Appendix I to Ins. 2.15 is repealed.
SECTION 7. Ins. 2.16(3)(a)2. is amended to read:
SECTION 8. Effective Date. This rule will take effect on the first day of the month after publication, as provided in s. 227.22 (2) (intro.), Stats., and shall apply to solicitations which commence on the first day of the sixth month after the effective date of these changes. Office of the Commissioner of Insurance
Private Sector Fiscal Analysis
for Life Insurance and Annuity Contracts
This rule change will have no significant effect on the private sector regulated by OCI.
