1. (a) An insurance producer, or an insurer in a case in which an insurance producer is not involved, shall not recommend to a consumer the:

   1. (1) purchase of an annuity; or

   2. (2) exchange of an annuity that results in another insurance transaction;

      that is unsuitable for the consumer.

2. (b) A determination regarding whether a purchase or an exchange under subsection (a) is unsuitable for a consumer must be made:

   1. (1) based on the facts disclosed by the consumer concerning the consumer's:

      1. (A) investments and other insurance products; and
      2. (B) financial situation and needs; and
   2. (2) according to the rule adopted under section 4 of this chapter.

As added by P.L.138-2005, SEC.2. Amended by P.L.131-2007, SEC.3.