§ 58-33A-16 — Annuity--Best interest standard--Material control or influence.

South Dakota § 58-33A-16

• Jurisdiction: South Dakota
• Title 58: INSURANCE
• Ch. 58-32: STANDARDS FOR ADVERTISEMENT, SOLICITATION, AND SALE OF LIFE AND HEALTH INSURANCE

Text

A producer, when making a recommendation of an annuity, shall act in the best interest of the consumer under the circumstances known at the time the recommendation is made, without placing the producer’s or the insurer’s financial interest ahead of the consumer’s interest. For purposes of this section, a producer has acted in the best interest of the consumer by satisfying the obligations regarding care in §§ 58-33A-16.1 to 58-33A-16.3 , inclusive, disclosure in §§ 58-33A-16.4 to 58-33A-16.6 , inclusive, conflict of interest in § 58-33A-16.7 , and documentation in § 58-33A-19.2 . Any requirement applicable to a producer under §§ 58-33A-13 to 58-33A-27 , inclusive, must apply to every producer who has exercised material control or influence in the making of a recommendation and has received direct compensation as a result of the recommendation or sale, regardless of whether the producer has had any direct contact with the consumer. Activities such as providing or delivering marketing or educational materials, product wholesaling or other back-office product support, and general supervision of a producer do not, in and of themselves, constitute material control or influence. The following acts, when considered in isolation, do not constitute material control or influence: (1) Receipt of override commissions; (2) Transmittal of documents, including application to insurers; and (3) Providing illustrations and quotes.

Legislative History

SL 2008, ch 273, § 4; SL 2012, ch 250, § 1; SL 2022, ch 186, § 4, eff. Jan. 1, 2023; SL 2023, ch 168, § 2.