§ 3209. Life insurance, annuities and funding agreements disclosure\nrequirements. (a) Except as hereafter exempted, this section shall apply\nto any solicitation, negotiation or procurement of life insurance,\nannuities or funding agreements occurring within this state. This\nsection shall apply to any issuer of life insurance or annuity contracts\nor funding agreements, including fraternal benefit societies and the\nlife insurance department of a savings and insurance bank. Unless\notherwise specifically included, this section shall not apply to: credit\nlife insurance; group life insurance; life insurance policies, annuity\ncontracts, and funding agreements issued in connection with pension and\nwelfare plans as defined by and to the extent covered by the federal\nEmployee Retirement Income Security Act of 1974 (ERISA); funding\nagreements issued to other than individuals pursuant to subsection (b)\nof section three thousand two hundred twenty-two of this article; and\nany group annuity unless at least one certificate is subject to\nparagraph two of subsection (b) of section four thousand two hundred\ntwenty-three of this chapter.\n (b) (1) No policy of life insurance shall be delivered or issued for\ndelivery in this state after the applicable effective date, as set forth\nin subsection (n) of this section, unless the prospective purchaser has\nbeen provided with the following:\n (A) a copy of the most recent buyer's guide and the preliminary\ninformation required by subsection (d) of this section, at or prior to\nthe time an application is taken. When sales solicitations are made by\nmail, without the involvement of an agent or broker, each initial\nsolicitation must include a copy of the buyer's guide unless the policy\nfor which application is made provides for a period of at least thirty\ndays within which the applicant may return the policy for an\nunconditional refund of the premiums paid, in which event the buyer's\nguide must be delivered with the policy or prior to delivery of the\npolicy; in addition, such solicitation must alert the prospective\npurchaser of the right to receive, upon request, a buyer's guide and a\npolicy summary prior to delivery of the policy; and\n (B) a policy summary upon delivery of the policy.\n (2) No annuity contract or life insurance policy or certificate with\nan equity index account shall be delivered or issued for delivery in\nthis state unless, no later than at the time of application, the\nprospective purchaser has been provided with a disclosure statement\ncontaining the following:\n (A) a statement in bold type to the effect that the equity index\naccount provides benefits linked to an external equity index and does\nnot participate directly in the equity market;\n (B) a statement identifying the equity index used in the equity index\nformula, together with a description of any alternate index should the\ninitial index no longer be publicly available;\n (C) a statement indicating whether paid dividends are included in\nchanges in the equity index, together with a description of how such\ndividends, or lack thereof, would affect the changes in the equity\nindex; the statement must provide the average dividend rate over the\nlesser of ten years or the calculable life of the index;\n (D) a statement fully describing the equity index formula;\n (E) a statement explaining and illustrating the equity index formula\nincluding any features of the equity index formula subject to change\nafter issuance of the contract, policy or certificate;\n (F) a statement identifying the initial minimum guaranteed interest\nrate for the minimum accumulation value of an equity index account and\nany withdrawal charge;\n (G) a statement identifying the initial current and the minimum\nspecified participation rate, i.e., how much of the increase in the\nindex will be used to calculate the indexed linked interest rate, if\nany;\n (H) a statement identifying the initial current and the minimum
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