§ 10-2-603 — Bank sale of annuities - disclosure requirements

(1) Any
financial institution, or any subsidiary or employee thereof, which sells a fixed or
variable annuity contract shall receive written acknowledgment from the purchaser
that the annuity which is being purchased may involve investment risk and is not
insured by the federal deposit insurance corporation or the national credit union
share insurance fund. Such written notice shall be clear and conspicuous and shall
be given before or contemporaneously with the purchase of the annuity. This
subsection (1) shall apply to an affiliate or subsidiary of a financial institution if such
an affiliate or subsidiary sells insurance on the premises of a financial institution.

(2) A clear and conspicuous notice substantially in the following form
complies with this section:

Acknowledgment

___________________________________

(Complete name of investment)

I understand that the investment product I am purchasing is not a bank deposit and
is not an obligation of, nor is it guaranteed by, any bank. This product is not insured
or guaranteed by the federal deposit insurance corporation. In addition, I
understand that the investment product purchased may be subject to investment
risk, including possible loss of principal, and that any investment product's past
performance should not be considered an indication of future results.

__________________________________________________

(Date)

(Signed)

Legislative History

Source: L. 94: Entire section added, p. 1354, � 7, effective July 1, 1995. L. 97: (1) amended, p. 429, � 3, effective April 24.