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Life Health > Annuities > Fixed Annuities

West Virginia adopts updated annuity disclosure rule/buyer's guide

By Daniel Williams

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According to a release from NAFA, “On April 24, 2015, the West Virginia Office of the Insurance Commissioner filed the final amended annuity disclosure rule, 114 CSR 11E, with the W. VA Secretary of State, adopting the updated NAIC Annuity Disclosure Model Regulation #245 (as revised in 2011), which includes the adoption of the updated 2013 Annuity Buyer’s Guide.”

NAFA stated that, “For sales of fixed annuities, either the “2013 Buyer’s Guide for Deferred Annuities” or the “2013 Buyer’s Guide for Deferred Annuities – Fixed” can be used.

Additional notes from the release:

* The new rule becomes effective July 23, 2015; however, pursuant to WVAOIC Informational Letter No. 192, the Commissioner will allow a phase-in period for compliance with the new rule, but the rule’s provisions will become mandatory for all annuity contracts issued or renewed on or after January 1, 2016.

* The OIC also adopted the amended 2012 NAIC Model Rule #821, Recognizing a New Annuity Mortality Table for Use in Determining Reserve Liabilities for Annuities, which incorporates the 2012 Individual Annuity Reserving (2012 IAR) Table.

* The 2012 IAR Table was developed by the Society of Actuaries Committee on Life Insurance Research to take into consideration the more recent industry experience with mortality improvement. The new Table is more dynamic and is considered to be a generational mortality table, which should keep the Table from becoming dated too quickly.

* The effective date for this amended rule 114 CSR 45 is July 23, 2015; however, as with the adoption of 114 CSR 11E,above, the Commissioner is allowing a phase-in period for compliance with the amended rule. Enforcement of the Rule’s provisions and use of the 2012 IAR Table becomes mandatory for annuities issued or renewed on or after January 1, 2016.

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