20-1243.03. Duties of insurers and insurance producers

A. In recommending to a consumer the purchase of an annuity or the exchange of an annuity that results in another insurance transaction or a series of insurance transactions, the insurance producer, or the insurer if no producer is involved, shall have reasonable grounds for believing that the recommendation is suitable for the consumer on the basis of the facts disclosed by the consumer as to the consumer s investments and other insurance products and as to the consumer s financial situation and needs.

B. Before the execution of a purchase or exchange of an annuity resulting from a recommendation, an insurance producer, or an insurer if no producer is involved, shall make reasonable efforts to obtain information concerning:

1. The consumer s financial status.

2. The consumer s tax status.

3. The consumer s investment objectives.

4. Other information considered to be reasonable by the insurance producer, or the insurer if no producer is involved, in making a recommendation to the consumer.

C. Except as provided under subsection D, an insurance producer, or the insurer if no producer is involved, does not have any obligation to a consumer under subsection A related to any recommendation if a consumer either:

1. Refuses to provide relevant information that is requested by the insurer or insurance producer.

2. Decides to enter into an insurance transaction that is not based on a recommendation of the insurer or insurance producer.

3. Fails to provide complete or accurate information.

D. An insurer's or insurance producer s recommendation shall be reasonable under all of the circumstances actually known to the insurer or insurance producer at the time of the recommendation.