Nev. Admin. Code § 688A.Sec. 17 - NEW
1. Prior to the recommendation or sale of an
annuity, the producer shall prominently disclose the following information to
the consumer on a form approved by the Commissioner:
(a) A description of the scope and terms of
the relationship with the consumer and the role of the producer in the
transaction;
(b) An affirmative
statement on whether the producer is licensed and authorized to sell the
following products:
(1) Fixed
annuities;
(2) Fixed indexed
annuities;
(3) Variable
annuities;
(4) Life
insurance;
(5) Mutual
funds;
(6) Stocks and bonds;
and
(7) Certificates of
deposit;
(c) An
affirmative statement describing the insurers the producer is authorized,
contracted or appointed, or otherwise able to sell insurance products for,
using the following descriptions:
(1) From one
insurer;
(2) From two or more
insurers; or
(3) From two or more
insurers although primarily contracted with one insurer;
(d) 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
(e) A notice of the right of the consumer to
request additional information regarding cash compensation described in
subsection 2.
2. Upon
request of the consumer or the designated representative of the consumer, the
producer shall disclose:
(a) A reasonable
estimate of the amount of cash compensation to be received by the producer,
which may be stated as a range of amounts or percentages; and
(b) Whether the cash compensation is a
one-time or multiple occurrence amount and, if the cash compensation is a
multiple occurrence amount, the frequency and amount of the occurrence, which
may be stated as a range of amounts or percentages.
3. Prior to or at the time of the
recommendation or sale of an annuity, the producer shall have a reasonable
basis to believe the consumer has been informed of various features of the
annuity, such as the potential surrender period and surrender charge, potential
tax penalty if the consumer sells, exchanges, surrenders or annuitizes the
annuity, mortality and expense fees, investment advisory fees, any annual fees,
potential charges for and features of riders or other options of the annuity,
limitations on interest returns, potential changes in nonguaranteed elements of
the annuity, insurance and investment components and market risk.
4. The requirements of this section are
intended to supplement and not replace any other requirement of the laws of
this State to provide information or disclosures to a consumer purchasing an
annuity, including, without limitation, the requirements set forth in NAC
686A.573,
686A.577,
688A.470 and 688A.475.
Notes
NRS 679B.130
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