Montana Code 33-20-903. Applicability
33-20-903. Applicability. (1) This part applies to all group and individual annuity contracts and certificates except:
Terms Used In Montana Code 33-20-903
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Contract: A legal written agreement that becomes binding when signed.
- Nonguaranteed elements: means the premiums, credited interest rates (including any bonus), benefits, values, noninterest-based credits, and charges or elements of formulas used to determine any of these items that are subject to insurer discretion and are not guaranteed at issue. See Montana Code 33-20-904
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201
(a)registered or nonregistered variable annuities or other registered products;
(b)immediate and deferred annuities that do not contain nonguaranteed elements;
(c)structured settlement annuities; and
(d)as provided in subsection (2), annuities used to fund:
(i)an employee pension plan that is covered by the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1001, et seq.;
(ii)a plan described by section 401(a), 401(k), or 403(b) of the Internal Revenue Code, 26 U.S.C. § 401(a), 401(k), or 403(b), when the plan, for purposes of the Employment Retirement Income Security Act of 1974, is established or maintained by an employer;
(iii)a governmental plan or church plan defined in section 414 of the Internal Revenue Code, 26 U.S.C. § 414, or a deferred compensation plan of a state or local government or a tax-exempt organization under section 457 of the Internal Revenue Code, 26 U.S.C. § 457; or
(iv)a nonqualified deferred compensation arrangement established or maintained by an employer or plan sponsor.
(2)(a) The provisions of this part apply to annuities used to fund a plan or arrangement when:
(i)the plan or arrangement is funded solely by contributions that an employee elects to make whether on a pretax or after-tax basis;
(ii)the insurer has been notified that plan participants may choose from among two or more fixed annuity providers; and
(iii)there is a direct solicitation of an individual employee by an insurance producer for the purchase of an annuity contract.
(b)As used in this subsection (2), direct solicitation does not include any meeting held by an insurance producer solely for the purpose of educating or enrolling employees in the plan or arrangement.