Prior to or at the time of the recommendation or sale of an annuity, the producer shall prominently disclose to the consumer on a form substantially similar to the form prescribed by the director and available on the division’s website:

1. (1) A description of the scope and terms of the relationship with the consumer and the role of the producer in the transaction;

2. (2) An affirmative statement on whether the producer is licensed and authorized to sell the following products:

   1. (a) Fixed annuities;
   2. (b) Fixed indexed annuities;
   3. (c) Variable annuities;
   4. (d) Life insurance;
   5. (e) Mutual funds;
   6. (f) Stocks and bonds; and
   7. (g) Certificates of deposit;

3. (3) An affirmative statement describing the insurers the producer is authorized, contracted, appointed, or otherwise able to sell insurance products for using the following descriptions:

   1. (a) From one insurer;
   2. (b) From two or more insurers; or
   3. (c) From two or more insurers although primarily contracted with one insurer;
4. (4) A description of the sources and types of cash compensation and non-cash compensation to be received by the producer, including whether the producer is to be compensated for the sale of a recommended annuity by commission as part of premium or other remuneration received from the insurer, intermediary, or other producer or by fee as a result of a contract for advice or consulting services; and
5. (5) A notice of the consumer’s right to request additional information regarding cash compensation described in § 58-33A-16.6.

Source: SL 2022, ch 186 , § 12, eff. Jan. 1, 2023.