CHAPTER 9. RECOMMENDATIONS TO SENIOR CONSUMERS
IC 27-4-9
Chapter 9. Recommendations to Senior Consumers
IC 27-4-9-1
"Securities commissioner"
Sec. 1. As used in this chapter, "securities commissioner" refers
to the commissioner appointed by the secretary of state under
IC 23-19-6-1(a).
As added by P.L.138-2005, SEC.2. Amended by P.L.27-2007,
SEC.28.
IC 27-4-9-2
"Consumer"
Sec. 2. As used in this chapter, "consumer" means an individual
who receives a recommendation to purchase or exchange an annuity
that results in the recommended purchase or exchange.
As added by P.L.138-2005, SEC.2. Amended by P.L.131-2007,
SEC.2.
IC 27-4-9-3
Suitability of annuity recommendations
Sec. 3. (a) An insurance producer, or an insurer in a case in which
an insurance producer is not involved, shall not recommend to a
consumer the:
(1) purchase of an annuity; or
(2) exchange of an annuity that results in another insurance
transaction;
that is unsuitable for the consumer.
(b) A determination regarding whether a purchase or an exchange
under subsection (a) is unsuitable for a consumer must be made:
(1) based on the facts disclosed by the consumer concerning the
consumer's:
(A) investments and other insurance products; and
(B) financial situation and needs; and
(2) according to the rule adopted under section 4 of this chapter.
As added by P.L.138-2005, SEC.2. Amended by P.L.131-2007,
SEC.3.
IC 27-4-9-4
Rules
Sec. 4. (a) The department shall adopt rules under IC 4-22-2 to
implement this chapter.
(b) The rules adopted under subsection (a) must set forth the
duties that apply to an insurer or an insurance producer in
determining whether reasonable grounds exist to believe that a
recommendation to purchase or exchange an annuity is suitable for
a consumer to whom the recommendation is made based on the facts
disclosed by the consumer concerning the consumer's investments,
other insurance products, and financial situation and needs.
As added by P.L.138-2005, SEC.2. Amended by P.L.131-2007,
SEC.4.
IC 27-4-9-5
Violations
Sec. 5. (a) Except as provided in subsection (b), a
recommendation made in violation of section 3 of this chapter is an
unfair method of competition or an unfair and deceptive act or
practice under IC 27-4-1-4.
(b) A recommendation made in violation of section 3 of this
chapter is not an unfair method of competition or an unfair and
deceptive act or practice under IC 27-4-1-4 if the recommendation is
made in compliance with the National Association of Securities
Dealers Conduct Rules concerning suitability, as determined by the
commissioner.
As added by P.L.138-2005, SEC.2.
IC 27-4-9-6
Commissioner actions concerning compliance
Sec. 6. (a) The commissioner may conduct an investigation,
pursue an enforcement action, and take other official action that the
commissioner considers appropriate to ensure compliance with
section 3 of this chapter.
(b) With regard to a variable annuity, the commissioner may:
(1) consult with the securities commissioner; and
(2) use the resources of the securities commissioner;
in making a final determination regarding any issue concerning
compliance with section 3 of this chapter.
(c) If the securities commissioner is informed of a violation or
suspected violation of section 3 of this chapter or other insurance
laws of the state, the securities commissioner shall timely advise the
commissioner of the violation or suspected violation.
As added by P.L.138-2005, SEC.2.