When this annuity rule applies and when it does not

(a) This part applies to any recommendation or sale of an annuity. (b) This part does not apply to transactions involving: (1) Direct-response solicitations where there is no recommendation based on information collected from the consumer pursuant to this part; or (2) Contracts used to fund: (A) An employee pension or welfare benefit plan that is covered by the Employee Retirement Income Security Act of 1974, P.L. 93-406, as amended; (B) A plan described by section 401(a), 401(k), 403(b), 408(k), or 408(p) of the Internal Revenue Code of 1986, as amended, if established or maintained by an employer; (C) A government plan or church plan defined in section 414 of the Internal Revenue Code of 1986, as amended, a government or church welfare benefit plan, or a deferred compensation plan of a state or local government or tax exempt organization subject to section 457 of the Internal Revenue Code of 1986, as amended; or (D) A non-qualified deferred compensation arrangement established or maintained by an employer or plan sponsor; (3) Settlements of or assumptions of liabilities associated with personal injury litigation or any dispute or claim resolution process; or (4) Formal prepaid funeral contracts. (c) Nothing in this part shall be construed to affect in any manner any provision of chapter 485A.