Section 65IAC8-4-2. Annuity prizes; time of payment

   (a) Any prize of five hundred thousand dollars ($500,000) or more may be paid as an annuity over a period of time. If a prize is to be paid as an annuity prize, the applicable game rules shall:

(1) designate the prize as an annuity prize; and

(2) establish the period of time over which payments will be made.

  (b) When a prize or share of a prize is to be paid over time, the director or the director's designee may round the actual amount of the prize or share to the nearest one thousand dollars ($1,000) to facilitate purchase of an appropriate funding mechanism.

  (c) Unless the game rules for a specific game provide otherwise, the prize claimant of an annuity prize may elect to receive the prize in a single lump sum payment, which will be equal to the amount required to fund the annuity prize payments. The prize claimant must select the payment option for distribution of the prize amount within sixty (60) days from the day the prize claimant becomes entitled to receive the prize. The election of the prize claimant shall apply to all prize winners of that prize.

  (d) If a prize claimant fails to select a payment option under subsection (b), the prize amount shall be paid out in a single lump sum payment pursuant to subsection (b)(2).

  (e) The director may accelerate the payment of a prize when acceleration is determined to be in the best interest of the commission. The valuation of securities involved and the determination of the present value of accelerated payments are solely within the discretion of the director or the director's designee. (State Lottery Commission; 65 IAC 8-4-2; emergency rule filed Aug 10, 2010, 10:39 a.m.: 20100901-IR-065100542ERA; emergency rule filed Jun 28, 2013, 1:16 p.m.: 20130710-IR-065130299ERA)