South Dakota Codified Laws 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;
Terms Used In South Dakota Codified Laws 58-33A-16.5
- 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.
- Contract: A legal written agreement that becomes binding when signed.
(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 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.