<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 - Annuity--Best interest standard--Material control or influence.</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s43d377bad84f4f3893b394b0dbdd56f3Normal { 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.s43d377bad84f4f3893b394b0dbdd56f3SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s43d377bad84f4f3893b394b0dbdd56f3CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s43d377bad84f4f3893b394b0dbdd56f3Statute { 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.s43d377bad84f4f3893b394b0dbdd56f3DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s43d377bad84f4f3893b394b0dbdd56f3StatuteNumber1 { margin-left: 0.75in; text-indent: -0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.s43d377bad84f4f3893b394b0dbdd56f3000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s43d377bad84f4f3893b394b0dbdd56f3NoIndent { text-indent: 0.00in; 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.s43d377bad84f4f3893b394b0dbdd56f3DefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s43d377bad84f4f3893b394b0dbdd56f3SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </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 - Annuity--Best interest standard--Material control or influence."><meta property="og:description" content="SDLRC Codified Law 58-33A-16 - Annuity--Best interest standard--Material control or influence."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes?Statute=58-33A-16"><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="s43d377bad84f4f3893b394b0dbdd56f3Normal"><a href="https://sdlegislature.gov/Statutes?Statute=58-33A-16" rel="noopener"><span class="s43d377bad84f4f3893b394b0dbdd56f3SENU">58-33A-16</span></a><span xml:space="preserve" class="s43d377bad84f4f3893b394b0dbdd56f3SENU">. </span><span class="s43d377bad84f4f3893b394b0dbdd56f3CL">Annuity--Best interest standard--Material control or influence.</span></p><p dir="ltr" class="s43d377bad84f4f3893b394b0dbdd56f3Statute"><span xml:space="preserve" class="s43d377bad84f4f3893b394b0dbdd56f3DefaultParagraphFont">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 §§ </span><a href="https://sdlegislature.gov/Statutes?Statute=58-33A-16.1" rel="noopener"><span class="s43d377bad84f4f3893b394b0dbdd56f3DefaultParagraphFont">58-33A-16.1</span></a><span xml:space="preserve" class="s43d377bad84f4f3893b394b0dbdd56f3DefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes?Statute=58-33A-16.3" rel="noopener"><span class="s43d377bad84f4f3893b394b0dbdd56f3DefaultParagraphFont">58-33A-16.3</span></a><span xml:space="preserve" class="s43d377bad84f4f3893b394b0dbdd56f3DefaultParagraphFont">, inclusive, disclosure in §§ </span><a href="https://sdlegislature.gov/Statutes?Statute=58-33A-16.4" rel="noopener"><span class="s43d377bad84f4f3893b394b0dbdd56f3DefaultParagraphFont">58-33A-16.4</span></a><span xml:space="preserve" class="s43d377bad84f4f3893b394b0dbdd56f3DefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes?Statute=58-33A-16.6" rel="noopener"><span class="s43d377bad84f4f3893b394b0dbdd56f3DefaultParagraphFont">58-33A-16.6</span></a><span xml:space="preserve" class="s43d377bad84f4f3893b394b0dbdd56f3DefaultParagraphFont">, inclusive, conflict of interest in § </span><a href="https://sdlegislature.gov/Statutes?Statute=58-33A-16.7" rel="noopener"><span class="s43d377bad84f4f3893b394b0dbdd56f3DefaultParagraphFont">58-33A-16.7</span></a><span xml:space="preserve" class="s43d377bad84f4f3893b394b0dbdd56f3DefaultParagraphFont">, and documentation in § </span><a href="https://sdlegislature.gov/Statutes?Statute=58-33A-19.2" rel="noopener"><span class="s43d377bad84f4f3893b394b0dbdd56f3DefaultParagraphFont">58-33A-19.2</span></a><span xml:space="preserve" class="s43d377bad84f4f3893b394b0dbdd56f3DefaultParagraphFont">. Any requirement applicable to a producer under §§ </span><a href="https://sdlegislature.gov/Statutes?Statute=58-33A-13" rel="noopener"><span class="s43d377bad84f4f3893b394b0dbdd56f3DefaultParagraphFont">58-33A-13</span></a><span xml:space="preserve" class="s43d377bad84f4f3893b394b0dbdd56f3DefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes?Statute=58-33A-27" rel="noopener"><span class="s43d377bad84f4f3893b394b0dbdd56f3DefaultParagraphFont">58-33A-27</span></a><span class="s43d377bad84f4f3893b394b0dbdd56f3DefaultParagraphFont">, 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.</span></p><p dir="ltr" class="s43d377bad84f4f3893b394b0dbdd56f3Statute"><span class="s43d377bad84f4f3893b394b0dbdd56f3DefaultParagraphFont">The following acts, when considered in isolation, do not constitute material control or influence:</span></p><p dir="ltr" class="s43d377bad84f4f3893b394b0dbdd56f3StatuteNumber1"><span class="s43d377bad84f4f3893b394b0dbdd56f3DefaultParagraphFont">(1)    Receipt of override commissions;</span></p><p dir="ltr" class="s43d377bad84f4f3893b394b0dbdd56f3StatuteNumber1"><span class="s43d377bad84f4f3893b394b0dbdd56f3DefaultParagraphFont">(2)    Transmittal of documents, including application to insurers; and</span></p><p dir="ltr" class="s43d377bad84f4f3893b394b0dbdd56f3StatuteNumber1"><span class="s43d377bad84f4f3893b394b0dbdd56f3DefaultParagraphFont">(3)    Providing illustrations and quotes.</span></p><p dir="ltr" class="s43d377bad84f4f3893b394b0dbdd56f3Normal"><span xml:space="preserve" class="s43d377bad84f4f3893b394b0dbdd56f3000000"> </span></p><p dir="ltr" class="s43d377bad84f4f3893b394b0dbdd56f3NoIndent"><span xml:space="preserve" class="s43d377bad84f4f3893b394b0dbdd56f3DefaultParagraphFont-000001">Source: </span><span class="s43d377bad84f4f3893b394b0dbdd56f3SCL">SL 2008, ch 273, § 4; SL 2012, ch 250, § 1; SL 2022, ch 186, § 4, eff. Jan. 1, 2023; SL 2023, ch 168, § 2.</span></p></div></body></html><br /><hr><br /><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 - Annuity--Best interest standard--Material control or influence.</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s6b60e9346d69498581ec3adcb7414929Normal { 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.s6b60e9346d69498581ec3adcb7414929SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s6b60e9346d69498581ec3adcb7414929CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s6b60e9346d69498581ec3adcb7414929Statute { 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.s6b60e9346d69498581ec3adcb7414929DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s6b60e9346d69498581ec3adcb7414929StatuteNumber1 { margin-left: 0.75in; text-indent: -0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } p.s6b60e9346d69498581ec3adcb7414929StatuteNumber2 { margin-left: 1.25in; text-indent: -0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.s6b60e9346d69498581ec3adcb7414929000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s6b60e9346d69498581ec3adcb7414929NoIndent { text-indent: 0.00in; 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.s6b60e9346d69498581ec3adcb7414929DefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s6b60e9346d69498581ec3adcb7414929SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </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-16.1 - Annuity--Recommendation--Producer responsibilities."><meta property="og:description" content="SDLRC Codified Law 58-33A-16.1 - Annuity--Recommendation--Producer responsibilities."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes?Statute=58-33A-16.1"><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="s6b60e9346d69498581ec3adcb7414929Normal"><a href="https://sdlegislature.gov/Statutes?Statute=58-33A-16.1" rel="noopener"><span class="s6b60e9346d69498581ec3adcb7414929SENU">58-33A-16.1</span></a><span xml:space="preserve" class="s6b60e9346d69498581ec3adcb7414929SENU">. </span><span class="s6b60e9346d69498581ec3adcb7414929CL">Annuity--Recommendation--Producer responsibilities.</span></p><p dir="ltr" class="s6b60e9346d69498581ec3adcb7414929Statute"><span class="s6b60e9346d69498581ec3adcb7414929DefaultParagraphFont">Producers must, in making a recommendation:</span></p><p dir="ltr" class="s6b60e9346d69498581ec3adcb7414929StatuteNumber1"><span class="s6b60e9346d69498581ec3adcb7414929DefaultParagraphFont">(1)    Exercise reasonable diligence, care, and skill to:</span></p><p dir="ltr" class="s6b60e9346d69498581ec3adcb7414929StatuteNumber2"><span class="s6b60e9346d69498581ec3adcb7414929DefaultParagraphFont">(a)    Know the consumer s financial situation, insurance needs, and financial objectives;</span></p><p dir="ltr" class="s6b60e9346d69498581ec3adcb7414929StatuteNumber2"><span class="s6b60e9346d69498581ec3adcb7414929DefaultParagraphFont">(b)    Understand the available recommendation options after making a reasonable inquiry into options available to the producer;</span></p><p dir="ltr" class="s6b60e9346d69498581ec3adcb7414929StatuteNumber2"><span class="s6b60e9346d69498581ec3adcb7414929DefaultParagraphFont">(c)    Have a reasonable basis to believe the recommended option effectively addresses the consumer s financial situation, insurance needs, and financial objectives over the life of the product as evaluated in light of the consumer profile information; and</span></p><p dir="ltr" class="s6b60e9346d69498581ec3adcb7414929StatuteNumber2"><span class="s6b60e9346d69498581ec3adcb7414929DefaultParagraphFont">(d)    Communicate the basis or bases of the recommendation;</span></p><p dir="ltr" class="s6b60e9346d69498581ec3adcb7414929StatuteNumber1"><span class="s6b60e9346d69498581ec3adcb7414929DefaultParagraphFont">(2)    Make reasonable efforts to obtain consumer profile information from the consumer prior to the recommendation of an annuity;</span></p><p dir="ltr" class="s6b60e9346d69498581ec3adcb7414929StatuteNumber1"><span class="s6b60e9346d69498581ec3adcb7414929DefaultParagraphFont">(3)    Consider the types of products the producer is authorized and licensed to recommend or sell that address the consumer s financial situation, insurance needs, and financial objectives. This does not require analysis or consideration of any products outside the authority and license of the producer or other possible alternative products or strategies available in the market at the time of the recommendation. A producer is not considered to be authorized for a product if the producers have no access to that product. The producer must be held to standards applicable to producers with similar authority and licensure; and</span></p><p dir="ltr" class="s6b60e9346d69498581ec3adcb7414929StatuteNumber1"><span class="s6b60e9346d69498581ec3adcb7414929DefaultParagraphFont">(4)    Have a reasonable basis to believe the consumer would benefit from certain features of the annuity, such as annuitization, death or living benefit, or other insurance-related features.</span></p><p dir="ltr" class="s6b60e9346d69498581ec3adcb7414929Statute"><span class="s6b60e9346d69498581ec3adcb7414929DefaultParagraphFont">Factors generally relevant in making a determination whether an annuity effectively addresses the consumer s financial situation, insurance needs, and financial objectives include the consumer profile information, characteristics of the insurer, product costs, rates, benefits, and features. The level of importance of each factor in this section may vary depending on the facts and circumstances of a particular case, but each factor may not be considered in isolation.</span></p><p dir="ltr" class="s6b60e9346d69498581ec3adcb7414929Normal"><span xml:space="preserve" class="s6b60e9346d69498581ec3adcb7414929000000"> </span></p><p dir="ltr" class="s6b60e9346d69498581ec3adcb7414929NoIndent"><span xml:space="preserve" class="s6b60e9346d69498581ec3adcb7414929DefaultParagraphFont-000001">Source: </span><span class="s6b60e9346d69498581ec3adcb7414929SCL">SL 2022, ch 186, § 7, eff. Jan. 1, 2023; SL 2023, ch 168, § 3.</span></p></div></body></html><br /><hr><br /><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 - Annuity--Best interest standard--Material control or influence.</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s1e560e7fa1c24045bf0bd67adf916195Normal { 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.s1e560e7fa1c24045bf0bd67adf916195SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s1e560e7fa1c24045bf0bd67adf916195CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s1e560e7fa1c24045bf0bd67adf916195Statute { 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.s1e560e7fa1c24045bf0bd67adf916195DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s1e560e7fa1c24045bf0bd67adf916195StatuteNumber1 { margin-left: 0.75in; text-indent: -0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.s1e560e7fa1c24045bf0bd67adf916195000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s1e560e7fa1c24045bf0bd67adf916195NoIndent { text-indent: 0.00in; 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.s1e560e7fa1c24045bf0bd67adf916195DefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s1e560e7fa1c24045bf0bd67adf916195SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </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-16.2 - Recommendation--Producer responsibilities--Applicability and intent."><meta property="og:description" content="SDLRC Codified Law 58-33A-16.2 - Recommendation--Producer responsibilities--Applicability and intent."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes?Statute=58-33A-16.2"><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="s1e560e7fa1c24045bf0bd67adf916195Normal"><a href="https://sdlegislature.gov/Statutes?Statute=58-33A-16.2" rel="noopener"><span class="s1e560e7fa1c24045bf0bd67adf916195SENU">58-33A-16.2</span></a><span xml:space="preserve" class="s1e560e7fa1c24045bf0bd67adf916195SENU">. </span><span class="s1e560e7fa1c24045bf0bd67adf916195CL">Recommendation--Producer responsibilities--Applicability and intent.</span></p><p dir="ltr" class="s1e560e7fa1c24045bf0bd67adf916195Statute"><span xml:space="preserve" class="s1e560e7fa1c24045bf0bd67adf916195DefaultParagraphFont">The requirements of § </span><a href="https://sdlegislature.gov/Statutes?Statute=58-33A-16.1" rel="noopener"><span class="s1e560e7fa1c24045bf0bd67adf916195DefaultParagraphFont">58-33A-16.1</span></a><span class="s1e560e7fa1c24045bf0bd67adf916195DefaultParagraphFont">:</span></p><p dir="ltr" class="s1e560e7fa1c24045bf0bd67adf916195StatuteNumber1"><span class="s1e560e7fa1c24045bf0bd67adf916195DefaultParagraphFont">(1)    Apply to the particular annuity as a whole, the underlying subaccounts to which funds are allocated at the time of purchase or exchange of an annuity, and riders and similar product enhancements;</span></p><p dir="ltr" class="s1e560e7fa1c24045bf0bd67adf916195StatuteNumber1"><span class="s1e560e7fa1c24045bf0bd67adf916195DefaultParagraphFont">(2)    Create a regulatory obligation but do not create a fiduciary obligation or relationship;</span></p><p dir="ltr" class="s1e560e7fa1c24045bf0bd67adf916195StatuteNumber1"><span class="s1e560e7fa1c24045bf0bd67adf916195DefaultParagraphFont">(3)    Do not mean the annuity with the lowest one-time or multiple occurrence compensation structure shall necessarily be recommended; and</span></p><p dir="ltr" class="s1e560e7fa1c24045bf0bd67adf916195StatuteNumber1"><span class="s1e560e7fa1c24045bf0bd67adf916195DefaultParagraphFont">(4)    Do not mean the producer has ongoing monitoring obligations, although such an obligation may be separately owed under the terms of a fiduciary, consulting, investment advising, or financial planning agreement between the consumer and the producer.</span></p><p dir="ltr" class="s1e560e7fa1c24045bf0bd67adf916195Normal"><span xml:space="preserve" class="s1e560e7fa1c24045bf0bd67adf916195000000"> </span></p><p dir="ltr" class="s1e560e7fa1c24045bf0bd67adf916195NoIndent"><span xml:space="preserve" class="s1e560e7fa1c24045bf0bd67adf916195DefaultParagraphFont-000001">Source: </span><span class="s1e560e7fa1c24045bf0bd67adf916195SCL">SL 2022, ch 186, § 8, eff. Jan. 1, 2023.</span></p></div></body></html><br /><hr><br /><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 - Annuity--Best interest standard--Material control or influence.</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.sc25d6314be5947889e6c456b83e25bf4Normal { 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.sc25d6314be5947889e6c456b83e25bf4SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sc25d6314be5947889e6c456b83e25bf4CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.sc25d6314be5947889e6c456b83e25bf4Statute { 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.sc25d6314be5947889e6c456b83e25bf4DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.sc25d6314be5947889e6c456b83e25bf4StatuteNumber1 { margin-left: 0.75in; text-indent: -0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.sc25d6314be5947889e6c456b83e25bf4000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.sc25d6314be5947889e6c456b83e25bf4NoIndent { text-indent: 0.00in; 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.sc25d6314be5947889e6c456b83e25bf4DefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sc25d6314be5947889e6c456b83e25bf4SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </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-16.3 - Considerations for annuity replacement or exchange."><meta property="og:description" content="SDLRC Codified Law 58-33A-16.3 - Considerations for annuity replacement or exchange."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes?Statute=58-33A-16.3"><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="sc25d6314be5947889e6c456b83e25bf4Normal"><a href="https://sdlegislature.gov/Statutes?Statute=58-33A-16.3" rel="noopener"><span class="sc25d6314be5947889e6c456b83e25bf4SENU">58-33A-16.3</span></a><span xml:space="preserve" class="sc25d6314be5947889e6c456b83e25bf4SENU">. </span><span class="sc25d6314be5947889e6c456b83e25bf4CL">Considerations for annuity replacement or exchange.</span></p><p dir="ltr" class="sc25d6314be5947889e6c456b83e25bf4Statute"><span class="sc25d6314be5947889e6c456b83e25bf4DefaultParagraphFont">In the case of an exchange or replacement of an annuity, the producer shall consider the whole transaction, which include taking into consideration whether:</span></p><p dir="ltr" class="sc25d6314be5947889e6c456b83e25bf4StatuteNumber1"><span class="sc25d6314be5947889e6c456b83e25bf4DefaultParagraphFont">(1)    The consumer will incur a surrender charge, be subject to the commencement of a new surrender period, lose existing benefits, such as death, living, or other contractual benefits, or be subject to increased fees, investment advisory fees, or charges for riders and similar product enhancements;</span></p><p dir="ltr" class="sc25d6314be5947889e6c456b83e25bf4StatuteNumber1"><span class="sc25d6314be5947889e6c456b83e25bf4DefaultParagraphFont">(2)    The replacing product would substantially benefit the consumer in comparison to the replaced product over the life of the product; and</span></p><p dir="ltr" class="sc25d6314be5947889e6c456b83e25bf4StatuteNumber1"><span class="sc25d6314be5947889e6c456b83e25bf4DefaultParagraphFont">(3)    The consumer has had another annuity exchange or replacement and, in particular, an exchange or replacement within the preceding sixty months.</span></p><p dir="ltr" class="sc25d6314be5947889e6c456b83e25bf4Normal"><span xml:space="preserve" class="sc25d6314be5947889e6c456b83e25bf4000000"> </span></p><p dir="ltr" class="sc25d6314be5947889e6c456b83e25bf4NoIndent"><span xml:space="preserve" class="sc25d6314be5947889e6c456b83e25bf4DefaultParagraphFont-000001">Source: </span><span class="sc25d6314be5947889e6c456b83e25bf4SCL">SL 2022, ch 186, § 9, eff. Jan. 1, 2023.</span></p></div></body></html><br /><hr><br /><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 - Annuity--Best interest standard--Material control or influence.</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s4d7cf9fc4cb048bb88e93859ea5dd5b7Normal { 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.s4d7cf9fc4cb048bb88e93859ea5dd5b7SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s4d7cf9fc4cb048bb88e93859ea5dd5b7CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s4d7cf9fc4cb048bb88e93859ea5dd5b7Statute { 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.s4d7cf9fc4cb048bb88e93859ea5dd5b7DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s4d7cf9fc4cb048bb88e93859ea5dd5b7000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s4d7cf9fc4cb048bb88e93859ea5dd5b7NoIndent { text-indent: 0.00in; 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.s4d7cf9fc4cb048bb88e93859ea5dd5b7DefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s4d7cf9fc4cb048bb88e93859ea5dd5b7SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </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-16.4 - Recommendation--Sale of annuity--Informed consumer."><meta property="og:description" content="SDLRC Codified Law 58-33A-16.4 - Recommendation--Sale of annuity--Informed consumer."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes?Statute=58-33A-16.4"><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="s4d7cf9fc4cb048bb88e93859ea5dd5b7Normal"><a href="https://sdlegislature.gov/Statutes?Statute=58-33A-16.4" rel="noopener"><span class="s4d7cf9fc4cb048bb88e93859ea5dd5b7SENU">58-33A-16.4</span></a><span xml:space="preserve" class="s4d7cf9fc4cb048bb88e93859ea5dd5b7SENU">. </span><span class="s4d7cf9fc4cb048bb88e93859ea5dd5b7CL">Recommendation--Sale of annuity--Informed consumer.</span></p><p dir="ltr" class="s4d7cf9fc4cb048bb88e93859ea5dd5b7Statute"><span class="s4d7cf9fc4cb048bb88e93859ea5dd5b7DefaultParagraphFont">Prior to or at the time of the recommendation or sale of an annuity, the producer shall have a reasonable basis to believe the consumer has been informed of various features of the annuity including the potential surrender period and surrender charge, potential tax penalty if the consumer sells, exchanges, surrenders, or annuitizes the annuity, mortality and expense fees, investment advisory fees, any annual fees, potential charges for and features of riders or other options of the annuity, limitations on interest returns, potential changes in non-guaranteed elements of the annuity, insurance and investment components, and market risk.</span></p><p dir="ltr" class="s4d7cf9fc4cb048bb88e93859ea5dd5b7Normal"><span xml:space="preserve" class="s4d7cf9fc4cb048bb88e93859ea5dd5b7000000"> </span></p><p dir="ltr" class="s4d7cf9fc4cb048bb88e93859ea5dd5b7NoIndent"><span xml:space="preserve" class="s4d7cf9fc4cb048bb88e93859ea5dd5b7DefaultParagraphFont-000001">Source: </span><span class="s4d7cf9fc4cb048bb88e93859ea5dd5b7SCL">SL 2022, ch 186, § 11, eff. Jan. 1, 2023.</span></p></div></body></html><br /><hr><br /><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 - Annuity--Best interest standard--Material control or influence.</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'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s8a3f949088654edcab3305f09c7434e8DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s8a3f949088654edcab3305f09c7434e8StatuteNumber1 { margin-left: 0.75in; text-indent: -0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } p.s8a3f949088654edcab3305f09c7434e8StatuteNumber2 { margin-left: 1.25in; text-indent: -0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.s8a3f949088654edcab3305f09c7434e8000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s8a3f949088654edcab3305f09c7434e8NoIndent { text-indent: 0.00in; 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.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; } </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><br /><hr><br /><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 - Annuity--Best interest standard--Material control or influence.</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s63ecb8462347416084a52f988253235bNormal { 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.s63ecb8462347416084a52f988253235bSENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s63ecb8462347416084a52f988253235bCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s63ecb8462347416084a52f988253235bStatute { 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.s63ecb8462347416084a52f988253235bDefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s63ecb8462347416084a52f988253235bStatuteNumber1 { margin-left: 0.75in; text-indent: -0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.s63ecb8462347416084a52f988253235b000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s63ecb8462347416084a52f988253235bNoIndent { text-indent: 0.00in; 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.s63ecb8462347416084a52f988253235bDefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s63ecb8462347416084a52f988253235bSCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </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-16.6 - Additional disclosure upon request."><meta property="og:description" content="SDLRC Codified Law 58-33A-16.6 - Additional disclosure upon request."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes?Statute=58-33A-16.6"><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="s63ecb8462347416084a52f988253235bNormal"><a href="https://sdlegislature.gov/Statutes?Statute=58-33A-16.6" rel="noopener"><span class="s63ecb8462347416084a52f988253235bSENU">58-33A-16.6</span></a><span xml:space="preserve" class="s63ecb8462347416084a52f988253235bSENU">. </span><span class="s63ecb8462347416084a52f988253235bCL">Additional disclosure upon request.</span></p><p dir="ltr" class="s63ecb8462347416084a52f988253235bStatute"><span class="s63ecb8462347416084a52f988253235bDefaultParagraphFont">Upon request of the consumer or the consumer s designated representative, the producer shall disclose:</span></p><p dir="ltr" class="s63ecb8462347416084a52f988253235bStatuteNumber1"><span class="s63ecb8462347416084a52f988253235bDefaultParagraphFont">(1)    A reasonable estimate of the amount of cash compensation to be received by the producer, which may be stated as a range of amounts or percentages; and</span></p><p dir="ltr" class="s63ecb8462347416084a52f988253235bStatuteNumber1"><span class="s63ecb8462347416084a52f988253235bDefaultParagraphFont">(2)    Whether the cash compensation is a one-time or multiple occurrence amount, and if a multiple occurrence amount, the frequency and amount of the occurrence, which may be stated as a range of amounts or percentages.</span></p><p dir="ltr" class="s63ecb8462347416084a52f988253235bNormal"><span xml:space="preserve" class="s63ecb8462347416084a52f988253235b000000"> </span></p><p dir="ltr" class="s63ecb8462347416084a52f988253235bNoIndent"><span xml:space="preserve" class="s63ecb8462347416084a52f988253235bDefaultParagraphFont-000001">Source: </span><span class="s63ecb8462347416084a52f988253235bSCL">SL 2022, ch 186, § 13, eff. Jan. 1, 2023.</span></p></div></body></html><br /><hr><br /><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 - Annuity--Best interest standard--Material control or influence.</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.sae2471d1aafd493587656869824dfb89Normal { 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.sae2471d1aafd493587656869824dfb89SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sae2471d1aafd493587656869824dfb89CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.sae2471d1aafd493587656869824dfb89Statute { 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.sae2471d1aafd493587656869824dfb89DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.sae2471d1aafd493587656869824dfb89StatuteNumber1 { margin-left: 0.75in; text-indent: -0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.sae2471d1aafd493587656869824dfb89000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.sae2471d1aafd493587656869824dfb89NoIndent { text-indent: 0.00in; 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.sae2471d1aafd493587656869824dfb89DefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sae2471d1aafd493587656869824dfb89SCL { 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-16.7 - Disclosure of producer conflicts of interest required--Certain factors excluded."><meta property="og:description" content="SDLRC Codified Law 58-33A-16.7 - Disclosure of producer conflicts of interest required--Certain factors excluded."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes?Statute=58-33A-16.7"><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="sae2471d1aafd493587656869824dfb89Normal"><a href="https://sdlegislature.gov/Statutes?Statute=58-33A-16.7" rel="noopener"><span class="sae2471d1aafd493587656869824dfb89SENU">58-33A-16.7</span></a><span xml:space="preserve" class="sae2471d1aafd493587656869824dfb89SENU">. </span><span class="sae2471d1aafd493587656869824dfb89CL">Disclosure of producer conflicts of interest required--Certain factors excluded.</span></p><p dir="ltr" class="sae2471d1aafd493587656869824dfb89Statute"><span class="sae2471d1aafd493587656869824dfb89DefaultParagraphFont">A producer shall identify and avoid or reasonably manage and disclose material conflicts of interest, including material conflicts of interest related to an ownership interest. The following factors, when considered in isolation, are not material conflicts of interest:</span></p><p dir="ltr" class="sae2471d1aafd493587656869824dfb89StatuteNumber1"><span class="sae2471d1aafd493587656869824dfb89DefaultParagraphFont">(1)    The producer has a minority ownership in an insurer or licensed business entity;</span></p><p dir="ltr" class="sae2471d1aafd493587656869824dfb89StatuteNumber1"><span class="sae2471d1aafd493587656869824dfb89DefaultParagraphFont">(2)    The producer has a majority ownership in a licensed business entity, if the ownership is conspicuously disclosed to the consumer; or</span></p><p dir="ltr" class="sae2471d1aafd493587656869824dfb89StatuteNumber1"><span class="sae2471d1aafd493587656869824dfb89DefaultParagraphFont">(3)    An immediate family member is employed by a licensed business entity.</span></p><p dir="ltr" class="sae2471d1aafd493587656869824dfb89Normal"><span xml:space="preserve" class="sae2471d1aafd493587656869824dfb89000000"> </span></p><p dir="ltr" class="sae2471d1aafd493587656869824dfb89NoIndent"><span xml:space="preserve" class="sae2471d1aafd493587656869824dfb89DefaultParagraphFont-000001">Source: </span><span class="sae2471d1aafd493587656869824dfb89SCL">SL 2022, ch 186, § 14, eff. Jan. 1, 2023; SL 2023, ch 168, § 4.</span></p></div></body></html>