58-33A-16.2. Recommendation--Producer responsibilities--Applicability and intent.
The requirements of §58-33A-16.1:
(1)Apply to the particular annuity as a whole, the underlying subaccounts to which funds are allocated at the time of purchase or exchange of an annuity, and riders and similar product enhancements;
(2)Create a regulatory obligation but do not create a fiduciary obligation or relationship;
(3)Do not mean the annuity with the lowest one-time or multiple occurrence compensation structure shall necessarily be recommended; and
(4)Do not mean the producer has ongoing monitoring obligations, although such an obligation may be separately owed under the terms of a fiduciary, consulting, investment advising, or financial planning agreement between the consumer and the producer.
Source: SL 2022, ch 186, §8, eff. Jan. 1, 2023.
Structure South Dakota Codified Laws
Chapter 33A - Standards For Advertisement, Solicitation, And Sale Of Life And Health Insurance
Section 58-33A-1 - Applicability of chapter.
Section 58-33A-2 - Purpose of chapter.
Section 58-33A-3 - "Advertisement" defined.
Section 58-33A-4 - Certain material and communication not deemed to be advertisement.
Section 58-33A-7 - Director authorized to promulgate rules--Scope of rules.
Section 58-33A-8 - Required disclosures to be clear and conspicuous.
Section 58-33A-8.1 - Disclosure of usual, customary, and reasonable limitation provision required.
Section 58-33A-12 - Director's prior approval may be required--Other remedies not precluded.
Section 58-33A-13 - Definition of terms.
Section 58-33A-14 - Recommendations to purchase or exchange annuities subject to requirements.
Section 58-33A-15 - Exemptions from requirements.
Section 58-33A-16 - Annuity best interest standard.
Section 58-33A-16.1 - Recommendation--Producer responsibilities.
Section 58-33A-16.2 - Recommendation--Producer responsibilities--Applicability and intent.
Section 58-33A-16.3 - Considerations for annuity replacement or exchange.
Section 58-33A-16.4 - Recommendation--Sale of annuity--Informed consumer.
Section 58-33A-16.5 - Recommendation--Sale of annuity--Disclosure to consumer.
Section 58-33A-16.6 - Additional disclosure upon request.
Section 58-33A-16.7 - Disclosure of producer conflicts of interest required.
Section 58-33A-18 - Conditions resulting in no obligation to consumer.
Section 58-33A-19 - Reasonableness under circumstances known to insurer.
Section 58-33A-19.2 - Producer obligations--Documentation--Time of recommendation or sale.
Section 58-33A-19.3 - Issuance by insurer to be reasonable and address consumer needs.
Section 58-33A-20 - Insurer's system for supervising recommendations.
Section 58-33A-20.2 - Prohibited conduct by insurance producer.
Section 58-33A-25 - Compliance with comparable standards by financial professional.
Section 58-33A-25.2 - Annuity training course providers--Training requirements of other states.
Section 58-33A-25.3 - Insurer to verify producer has completed annuity training course.
Section 58-33A-25.4 - Authorized insurance business--Other licenses.
Section 58-33A-25.5 - Definition of terms--Compliance with Conduct Rules.
Section 58-33A-26 - Corrective action for violations.