Section 688A.Sec. 17 - NEW1. 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:(2) Fixed indexed annuities;(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:(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.Nev. Admin. Code § 688A.Sec. 17
Added to NAC by Comm'r of Insurance by R109-23A, eff. 11/15/2024