<html> <head> <title>Rule 20:06:13:43.02 Determination of suitability.</title> <META NAME="Keywords" Content="Administrative Rules 20:06:13:43.02"> <META NAME="Description" Content="Administrative Rules 20:06:13:43.02 Determination of suitability."> <meta name=Generator content="Microsoft Office HTML Filter 2.0"> <meta http-equiv=Content-Type content="text/html; charset=windows-1252"> <meta name=Originator content="Microsoft Word 10"> <style> <!-- --> </style> </head> <body lang=EN-US> <div> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>20:06:13:43.02.&nbsp;&nbsp;Determination of suitability.</b> To determine whether the sale or solicitation of policies described in §&nbsp;20:06:13:43.01 is reasonable, prudent, or in the prospective insured's best interest, the agent, if any, shall examine the totality of the prospective insured's circumstances, including the following:</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)&nbsp;&nbsp;The prospective insured's financial condition, i.e., is the person on a fixed income, premium cost;</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;The prospective insured's need for insurance at the time of sale, i.e., existing policies, insured's finances; and</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3)&nbsp;&nbsp;The values, benefits, and costs of the prospective insured's existing insurance program, if any, when compared to the values, benefits, and costs of the recommended policy or policies.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Source:</b> 15 SDR 143, effective March 29, 1989.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>General Authority:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-4-1">58-4-1</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-17A-2">58-17A-2.</A></p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Law Implemented:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-17A-2">58-17A-2.</A></p> </div> </body> </html>