Ill. Admin. Code tit. 50, § 3120.40 - Definitions

Current through Register Vol. 46, No. 15, April 8, 2022

Annuity means an insurance product under State law that is individually solicited, whether the product is classified as an individual or group annuity.

Code means the Illinois Insurance Code [215 ILCS 5 ].

Continuing Education Provider or CE Provider means an individual or entity that is approved to offer continuing education courses pursuant to 50 Ill. Adm. Code 3119.

Department means the Department of Insurance.

Director means the Director of the Illinois Department of Insurance.

FINRA means the Financial Industry Regulatory Authority or a succeeding agency.

Insurance Producer means a person required to be licensed under the laws of this State to sell, solicit, or negotiate insurance, including annuities.

Insurer means an entity required to be licensed under the laws of this State to provide insurance products, including annuities.

Recommendation means advice provided by an insurance producer, or an insurer when no producer is involved, to an individual consumer that results in a purchase, exchange, or replacement of an annuity in accordance with that advice.

Replacement means a transaction in which a new policy or contract is to be purchased, and it is known or should be known to the proposing producer, or to the proposing insurer if there is no producer, that by reason of the transaction an existing policy or contract has been or is to be:

Lapsed, forfeited, surrendered or partially surrendered, assigned to the replacing insurer or otherwise terminated;

Converted to reduced paid-up insurance, continued as extended term insurance, or otherwise reduced in value by the use of nonforfeiture benefits or other policy values;

Amended so as to effect either a reduction in benefits or in the term for which coverage would otherwise remain in force or for which benefits would be paid;

Reissued with any reduction in cash value;

Used in a financed purchase.

Suitability Information means information that is reasonably appropriate to determine the suitability of a recommendation, including the following:

Age;

Annual income;

Financial situation and needs, including the financial resources used for the funding of the annuity;

Financial experience;

Financial objectives;

Intended use of the annuity;

Financial time horizon;

Existing assets, including investment and life insurance holdings;

Liquidity needs;

Liquid net worth;

Risk tolerance; and

Tax status.

Notes

Ill. Admin. Code tit. 50, § 3120.40

Amended at 35 Ill. Reg. 16087, effective September 26, 2011

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