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" refersto the commissioner appointed by the secretary of state underIC 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 individualwho receives a recommendation to purchase or exchange an annuitythat 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 whichan insurance producer is not involved, shall not recommend to aconsumer the:
        (1) purchase of an annuity; or
        (2) exchange of an annuity that results in another insurancetransaction;
that is unsuitable for the consumer.
    (b) A determination regarding whether a purchase or an exchangeunder subsection (a) is unsuitable for a consumer must be made:
        (1) based on the facts disclosed by the consumer concerning theconsumer'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 toimplement this chapter.
    (b) The rules adopted under subsection (a) must set forth theduties that apply to an insurer or an insurance producer indetermining whether reasonable grounds exist to believe that arecommendation to purchase or exchange an annuity is suitable fora consumer to whom the recommendation is made based on the factsdisclosed 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), arecommendation made in violation of section 3 of this chapter is anunfair method of competition or an unfair and deceptive act orpractice under IC 27-4-1-4.
    (b) A recommendation made in violation of section 3 of thischapter is not an unfair method of competition or an unfair anddeceptive act or practice under IC 27-4-1-4 if the recommendation ismade in compliance with the National Association of SecuritiesDealers Conduct Rules concerning suitability, as determined by thecommissioner.
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 thecommissioner considers appropriate to ensure compliance withsection 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 concerningcompliance with section 3 of this chapter.
    (c) If the securities commissioner is informed of a violation orsuspected violation of section 3 of this chapter or other insurancelaws of the state, the securities commissioner shall timely advise thecommissioner of the violation or suspected violation.
As added by P.L.138-2005, SEC.2.