58-33A-16.5. Recommendation--Sale of annuity--Disclosure to consumer.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)A description of the scope and terms of the relationship with the consumer and the role of the producer in the transaction;(2)An affirmative statement on whether the producer is licensed and authorized to sell the following products:(a)Fixed annuities;(b)Fixed indexed annuities;(c)Variable annuities;(d)Life insurance;(e)Mutual funds;(f)Stocks and bonds; and(g)Certificates of deposit;(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:(a)From one insurer;(b)From two or more insurers; or(c)From two or more insurers although primarily contracted with one insurer;(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 insurer;(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)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.
South Dakota Legal Code