<html xmlns="http://www.w3.org/1999/xhtml" lang="en-US"><head><meta charset="UTF-8"><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 58-33A-16.5 - Recommendation--Sale of annuity--Disclosure to consumer.</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s8a3f949088654edcab3305f09c7434e8Normal { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s8a3f949088654edcab3305f09c7434e8SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s8a3f949088654edcab3305f09c7434e8CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s8a3f949088654edcab3305f09c7434e8Statute { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; 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font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s8a3f949088654edcab3305f09c7434e8DefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s8a3f949088654edcab3305f09c7434e8SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style><meta name="viewport" content="width=device-width, initial-scale=1"><meta name="twitter:card" content="summary"><meta property="og:title" content="SD 58-33A-16.5 - Recommendation--Sale of annuity--Disclosure to consumer."><meta property="og:description" content="SDLRC Codified Law 58-33A-16.5 - Recommendation--Sale of annuity--Disclosure to consumer."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes?Statute=58-33A-16.5"><meta property="og:image" content="https://lawmakerdocuments.blob.core.usgovcloudapi.net/photos/logoshape.webp"><meta property="og:site_name" content="South Dakota Legislature"></head><body><div><p dir="ltr" class="s8a3f949088654edcab3305f09c7434e8Normal"><a href="https://sdlegislature.gov/Statutes?Statute=58-33A-16.5" rel="noopener"><span class="s8a3f949088654edcab3305f09c7434e8SENU">58-33A-16.5</span></a><span xml:space="preserve" class="s8a3f949088654edcab3305f09c7434e8SENU">. </span><span class="s8a3f949088654edcab3305f09c7434e8CL">Recommendation--Sale of annuity--Disclosure to consumer.</span></p><p dir="ltr" class="s8a3f949088654edcab3305f09c7434e8Statute"><span class="s8a3f949088654edcab3305f09c7434e8DefaultParagraphFont">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:</span></p><p dir="ltr" class="s8a3f949088654edcab3305f09c7434e8StatuteNumber1"><span class="s8a3f949088654edcab3305f09c7434e8DefaultParagraphFont">(1)    A description of the scope and terms of the relationship with the consumer and the role of the producer in the transaction;</span></p><p dir="ltr" class="s8a3f949088654edcab3305f09c7434e8StatuteNumber1"><span class="s8a3f949088654edcab3305f09c7434e8DefaultParagraphFont">(2)    An affirmative statement on whether the producer is licensed and authorized to sell the following products:</span></p><p dir="ltr" class="s8a3f949088654edcab3305f09c7434e8StatuteNumber2"><span class="s8a3f949088654edcab3305f09c7434e8DefaultParagraphFont">(a)    Fixed annuities;</span></p><p dir="ltr" class="s8a3f949088654edcab3305f09c7434e8StatuteNumber2"><span class="s8a3f949088654edcab3305f09c7434e8DefaultParagraphFont">(b)    Fixed indexed annuities;</span></p><p dir="ltr" class="s8a3f949088654edcab3305f09c7434e8StatuteNumber2"><span class="s8a3f949088654edcab3305f09c7434e8DefaultParagraphFont">(c)    Variable annuities;</span></p><p dir="ltr" class="s8a3f949088654edcab3305f09c7434e8StatuteNumber2"><span class="s8a3f949088654edcab3305f09c7434e8DefaultParagraphFont">(d)    Life insurance;</span></p><p dir="ltr" class="s8a3f949088654edcab3305f09c7434e8StatuteNumber2"><span class="s8a3f949088654edcab3305f09c7434e8DefaultParagraphFont">(e)    Mutual funds;</span></p><p dir="ltr" class="s8a3f949088654edcab3305f09c7434e8StatuteNumber2"><span class="s8a3f949088654edcab3305f09c7434e8DefaultParagraphFont">(f)    Stocks and bonds; and</span></p><p dir="ltr" class="s8a3f949088654edcab3305f09c7434e8StatuteNumber2"><span class="s8a3f949088654edcab3305f09c7434e8DefaultParagraphFont">(g)    Certificates of deposit;</span></p><p dir="ltr" class="s8a3f949088654edcab3305f09c7434e8StatuteNumber1"><span class="s8a3f949088654edcab3305f09c7434e8DefaultParagraphFont">(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:</span></p><p dir="ltr" class="s8a3f949088654edcab3305f09c7434e8StatuteNumber2"><span class="s8a3f949088654edcab3305f09c7434e8DefaultParagraphFont">(a)    From one insurer;</span></p><p dir="ltr" class="s8a3f949088654edcab3305f09c7434e8StatuteNumber2"><span class="s8a3f949088654edcab3305f09c7434e8DefaultParagraphFont">(b)    From two or more insurers; or</span></p><p dir="ltr" class="s8a3f949088654edcab3305f09c7434e8StatuteNumber2"><span class="s8a3f949088654edcab3305f09c7434e8DefaultParagraphFont">(c)    From two or more insurers although primarily contracted with one insurer;</span></p><p dir="ltr" class="s8a3f949088654edcab3305f09c7434e8StatuteNumber1"><span class="s8a3f949088654edcab3305f09c7434e8DefaultParagraphFont">(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</span></p><p dir="ltr" class="s8a3f949088654edcab3305f09c7434e8StatuteNumber1"><span xml:space="preserve" class="s8a3f949088654edcab3305f09c7434e8DefaultParagraphFont">(5)    A notice of the consumer s right to request additional information regarding cash compensation described in § </span><a href="https://sdlegislature.gov/Statutes?Statute=58-33A-16.6" rel="noopener"><span class="s8a3f949088654edcab3305f09c7434e8DefaultParagraphFont">58-33A-16.6</span></a><span class="s8a3f949088654edcab3305f09c7434e8DefaultParagraphFont">.</span></p><p dir="ltr" class="s8a3f949088654edcab3305f09c7434e8Normal"><span xml:space="preserve" class="s8a3f949088654edcab3305f09c7434e8000000"> </span></p><p dir="ltr" class="s8a3f949088654edcab3305f09c7434e8NoIndent"><span xml:space="preserve" class="s8a3f949088654edcab3305f09c7434e8DefaultParagraphFont-000001">Source: </span><span class="s8a3f949088654edcab3305f09c7434e8SCL">SL 2022, ch 186, § 12, eff. Jan. 1, 2023.</span></p></div></body></html>