§ 58-60-140. Contents of disclosure document. - North Carolina Statutes

§ 58‑60‑140. Contents of disclosure document.

At a minimum, all of thefollowing information shall be included in the disclosure document requiredunder this Part:

(1)        The generic name ofthe contract, the company product name, if different, and form number, and thefact that it is an annuity.

(2)        The insurer's nameand address.

(3)        A description of thecontract and its benefits, emphasizing its long‑term nature, includingthe following, if appropriate:

a.         The guaranteed,nonguaranteed, and determinable elements of the contract, and theirlimitations, if any, and an explanation of how they operate.

b.         An explanation ofthe initial crediting rate, specifying any bonus or introductory portion, theduration of the rate, and the fact that rates may change from time to time andare not guaranteed.

c.         Periodic incomeoptions both on a guaranteed and nonguaranteed basis.

d.         Any value reductionscaused by withdrawals from or surrender of the contract.

e.         How values in thecontract can be accessed.

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

g.         A summary of thefederal tax status of the contract and any penalties applicable on withdrawalof values from the contract.

h.         The impact of anyrider, such as a long‑term care rider.

(4)        The specific dollaramount or percentage charges and fees with an explanation of how they apply.

(5)        Information aboutthe current guaranteed rate for new contracts that contains a clear notice thatthe rate is subject to change.

Insurers shall define termsused in the disclosure statement in language that facilitates the understandingby a typical person within the segment of the public to which the disclosurestatement is directed. (2005‑234, s. 1.11.)