Annuity Buyer's Guide
There are important changes to s. Ins 2.15, Wis. Adm. Code, which became effective September 1, 2015, and apply to annuity solicitations beginning on March 1, 2016. The changes adopt the
NAIC buyer's guide for annuities. Wisconsin adopted the 1998 version of the
NAIC Life Insurance Buyer's Guide. Using the
NAIC guides for both life insurance and annuities will provide uniformity and consistency for insurers, agents and consumers.
Under the changes to the rule, instead of using the previous state-specific "Buyer's Guide to Annuities," insurers and their agents are required to provide prospective purchasers the most recent version of the
NAIC buyer's guide at the time an application is taken. In addition, the delivery of the applicable version of the buyer's guide will now be required in sales of variable annuities.
NAIC offers three versions of the buyer's guide: Buyer's Guide for Deferred Annuities (2013), Buyer's Guide for Deferred Annuities Fixed (2013), and Buyer's Guide for Deferred Annuities Variable (2013).
For sales of fixed and fixed index annuities, the Buyer's Guide for Deferred Annuities (2013) or the Buyer's Guide for Deferred Annuities Fixed (2013) shall be used. For sales of variable annuities, the Buyer's Guide for Deferred Annuities (2013) or the Buyer's Guide for Deferred Annuities Variable (2013) shall be used.
The changes to s. Ins 2.15, Wis. Adm. Code, repeal the outdated state-specific guide contained in Appendix 1. However, insurers and agents may continue to use the state-specific guide until March 1, 2016.
Copies of the
NAIC buyer's guides can be obtained from the
NAIC's Web site:
2012 Individual Annuity Reserving Mortality (IAR) Table
Under the prior version of s. Ins 2.30, Wis. Adm. Code, insurers were required to use the Annuity 2000 Mortality Table as adopted by the
NAIC. Under the amended rule,
OCI has mandated that insurers shall use the 2012
IAR Table as adopted by the
NAIC in December 2012 for calculating the minimum reserves on contracts written on or after January 1, 2016. The 2012
IAR Table is optional for contracts issued in 2015. The 2012
IAR Table provides insurers with a more accurate tool for calculating minimum reserves.
If you have any questions about the new annuity buyer's guides or the 2012
IAR Table, please e-mail Robin Jacobs at