Indiana Code 27-4-9-3. Suitability of annuity recommendations

Sec. 3. (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) purchase of an annuity; or

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Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
consumer: means an individual who receives a recommendation to purchase or exchange an annuity that results in the recommended purchase or exchange. See Indiana Code 27-4-9-2

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

that is unsuitable for the consumer.

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

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

(A) investments and other insurance products; and

(B) financial situation and needs; and

(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.