SDCL § 58-33A-16.5: Recommendation--Sale of annuity--Disclosure to consumer.

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:

(1) A description of the scope and terms of the relationship with the consumer and the role of the producer in the transaction;

(2) An affirmative statement on whether the producer is licensed and authorized to sell the following products:

(a) Fixed annuities;

(b) Fixed indexed annuities;

(c) Variable annuities;

(d) Life insurance;

(e) Mutual funds;

(f) Stocks and bonds; and

(g) Certificates of deposit;

(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:

(a) From one insurer;

(b) From two or more insurers; or

(c) From two or more insurers although primarily contracted with one insurer;

(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

(5) A notice of the consumer’s right to request additional information regarding cash compensation described in § 58-33A-16.6.