SDCL § 58-33A-16.2: Recommendation--Producer responsibilities--Applicability and intent.

The requirements of § 58-33A-16.1:

(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;

(2) Create a regulatory obligation but do not create a fiduciary obligation or relationship;

(3) Do not mean the annuity with the lowest one-time or multiple occurrence compensation structure shall necessarily be recommended; and

(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.