58-33A-25. Compliance with comparable standards by financial professional.
Recommendations and sales of annuities made in compliance with comparable standards shall satisfy the requirements of §§58-33A-13 to 58-33-27, inclusive. This section applies to all recommendations and sales of annuities made by financial professionals in compliance with business rules, controls, and procedures that satisfy a comparable standard even if such standard would not otherwise apply to the product or recommendation at issue. For this section to apply, an insurer shall:
(1)Monitor the relevant conduct of the financial professional seeking to rely on this section or the entity responsible for supervising the financial professional, such as the financial professional’s broker-dealer or an investment adviser registered under federal or state securities laws using information collected in the normal course of an insurer's business; and
(2)Provide to the entity responsible for supervising the financial professional seeking to rely on this section, such as the financial professional’s broker-dealer or investment adviser registered under federal or state securities laws, information and reports that are reasonably appropriate to assist the entity to maintain its supervision system.
Nothing in this section shall limit the director’s ability to investigate and enforce the provisions of §§58-33A-13 to 58-33A-27, inclusive, or limit the insurer’s obligation to comply with §58-33A-20(4), although the insurer may base its analysis on information received from either the financial professional or the entity supervising the financial professional.
Source: SL 2008, ch 273, §13; SL 2012, ch 250, §10; SL 2022, ch 186, §24, 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.