OAR 836-051-0915
Standards for the Disclosure Document and Buyer’s Guide

(1)

When the application for an annuity contract is taken in a face-to-face meeting, the applicant shall be given, at or before the time of application, both the disclosure document described in section (6) of this rule and the Buyer’s Guide contained in Exhibit 1 to this rule.

(2)

When the application for an annuity contract is taken by means other than in a face-to-face meeting, the applicant shall be sent both the disclosure document and the Buyer’s Guide no later than five business days after the completed application is received by the insurer. The following provisions apply to the requirement in this section:

(a)

With respect to an application received as a result of a direct solicitation through the mail:

(A)

Providing a Buyer’s Guide in a mailing inviting prospective applicants to apply for an annuity contract satisfies the requirement that the Buyer’s Guide be provided no later than five business days after receipt of the application.

(B)

Providing a disclosure document in a mailing inviting a prospective applicant to apply for an annuity contract satisfies the requirement that the disclosure document be provided no later than five business days after receipt of the application.

(b)

With respect to an application received through the Internet:

(A)

Taking reasonable steps to make the Buyer’s Guide available for viewing and printing on the insurer’s website satisfies the requirement that the Buyer’s Guide be provided no later than five business days of receipt of the application.

(B)

Taking reasonable steps to make the disclosure document available for viewing and printing on the insurer’s website satisfies the requirement that the disclosure document be provided no later than five business days after receipt of the application.

(c)

A solicitation for an annuity contract provided in other than a face-to-face meeting must include a statement that the proposed applicant may contact the insurance department of the state for a free annuity Buyer’s Guide, except that alternatively, an insurer may include a statement that the prospective applicant may contact the insurer for a free annuity Buyer’s Guide.

(3)

When the Buyer’s Guide and disclosure document are provided at delivery of the contract and are not provided at or before the time of application, a free look period of no less than 15 days must be provided for the applicant to return the annuity contract without penalty. This free look runs concurrently with the free look provided under the contract.

(4)

When the Buyer’s Guide and disclosure document are provided at the time of application, a free look period of no less than ten days must be provided to enable the contract owner to examine the contract with the disclosure document and return the annuity contract without penalty if not satisfied.

(5)

For the purpose of this rule, a “Buyer’s Guide” is the document in Exhibit 1 to this rule or the most current version adopted by the NAIC, or other published descriptions that are similar in nature approved by the Director. Companies may purchase personalized brochures from the NAIC or reproduce the Buyer’s Guide in their own type, style and format. Any description of an annuity feature in the Buyer’s Guide is for general education and does not imply that all features are acceptable for filing under Oregon standards.

(6)

At a minimum, the following information shall be included in the disclosure document required to be provided under OAR 836-051-0900 (Purpose; Authority) to 836-051-0925 (Trade Practice Regulation):

(a)

The generic name of the contract, the insurer product name, if different, and form number, and the fact that it is an annuity;

(b)

The insurer’s name and address;

(c)

A description of the contract and its benefits, emphasizing its long-term nature, including examples when appropriate, as follows:

(A)

The guaranteed, non-guaranteed and determinable elements of the contract, and their limitations, if any, and an explanation of how they operate;

(B)

An explanation of the initial crediting rate, specifying any bonus or introductory portion, the duration of the rate and the fact that rates may change from time to time and are not guaranteed;

(C)

Periodic income options both on a guaranteed and non-guaranteed basis;

(D)

Any value reductions caused by withdrawals from or surrender of the contract, and also a dollar-figure statement, which may be specific to the contract or given as an example using round numbers, of the maximum effect of penalties, surrender charges, market value adjustments and any other adjustments owing to a withdrawal or surrender;

(E)

How values in the contract can be accessed;

(F)

The death benefit, if available and how it will be calculated;

(G)

A summary of the federal tax status of the contract and any penalties applicable on withdrawal of values from the contract; and

(H)

The impact of any rider, such as a long-term care rider.

(d)

The specific dollar amount or percentage charges and fees, which shall be listed with an explanation of how they apply.

(e)

Information about the current guaranteed rate for new contracts, with a clear notice that the rate is subject to change.

(7)

An insurer must define terms used in the disclosure statement in language that facilitates the understanding by a typical person within the segment of the public to which the disclosure statement is directed.

Source: Rule 836-051-0915 — Standards for the Disclosure Document and Buyer’s Guide, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=836-051-0915.

836–051–0005
Statutory Authority 836–051–0010
Definitions 836–051–0015
Disclosure Requirements 836–051–0020
General Requirements 836–051–0030
Purpose and Applicability 836–051–0032
Definition 836–051–0034
Exemptions 836–051–0036
Disclosure Requirements 836–051–0038
Insurer Duties 836–051–0040
Trade Practice Regulation 836–051–0101
Statutory Authority 836–051–0106
Life Insurance Valuation and Nonforfeiture Standards 836–051–0110
Life Insurance Nonforfeiture Standards for Men and Women 836–051–0115
Smoker/Nonsmoker Mortality Tables 836–051–0150
Individual Deferred Annuities Surrender Charge 836–051–0153
Limitations on Surrender Charge Scales 836–051–0156
Fair Surrender Charges 836–051–0200
Authority 836–051–0210
Purpose 836–051–0220
Definitions 836–051–0230
Individual Annuity or Pure Endowment Contracts 836–051–0235
Application of the 2012 IAR Mortality Table 836–051–0240
Group Annuity or Pure Endowment Contracts 836–051–0250
Application of the 1994 GAR Table 836–051–0300
Statutory Authority 836–051–0310
Acknowledgement of Concurrence for Payout from Assignee or Beneficiary 836–051–0320
Payment Options 836–051–0330
Disclosure 836–051–0340
Exercise of the Accelerated Benefit 836–051–0350
Waiver of Premium 836–051–0360
Discrimination 836–051–0370
Minimum Benefit Standards 836–051–0380
Actuarial Disclosure and Reserves 836–051–0500
Purpose 836–051–0510
Applicability and Scope 836–051–0520
Definitions 836–051–0530
Policies to Be Illustrated 836–051–0540
General Rules and Prohibitions 836–051–0550
Standards for Basic Illustrations 836–051–0560
Standards for Supplemental Illustrations 836–051–0570
Delivery of Illustration and Record Retention 836–051–0580
Annual Report 836–051–0590
Annual Certifications 836–051–0600
Trade Practice Regulation 836–051–0700
Authorization, Genetic Testing 836–051–0750
Purpose 836–051–0755
Definitions 836–051–0760
Minimum Valuation Mortality Standards 836–051–0765
Minimum Valuation Interest Rate Standards 836–051–0770
Minimum Valuation Method Standards 836–051–0775
Transition Rules 836–051–0900
Purpose 836–051–0905
Applicability and Scope 836–051–0910
Definitions 836–051–0915
Standards for the Disclosure Document and Buyer’s Guide 836–051–0920
Report to Contract Owners 836–051–0925
Trade Practice Regulation
Last Updated

Jun. 8, 2021

Rule 836-051-0915’s source at or​.us