Section 688A.Sec. 24 - NEW1. Recommendations and sales of annuities made in compliance with comparable standards shall satisfy the requirements of sections 3 to 27, inclusive. This section applies to all recommendations and sales of annuities made by financial professionals in compliance with business rules, controls and procedures that satisfy a comparable standard even if such standard would not otherwise apply to the product or recommendation at issue. However, nothing in this section shall limit the ability of the Commissioner to investigate and enforce the provisions of sections 3 to 27, inclusive.2. Nothing in subsection 1 shall limit the obligations of an insurer to comply with subsection 1 of section 22, although the insurer may base its analysis on information received from either the financial professional or the entity supervising the financial professional.3. For subsection 1 to apply, an insurer shall:(a) Monitor the relevant conduct of the financial professional seeking to rely on subsection 1 or the entity responsible for supervising the financial professional, such as the financial professional's broker-dealer or an investment advisor registered under federal or state securities laws, using information collected in the normal course of the business of the insurer; and(b) Provide to the entity responsible for supervising the financial professional seeking to rely on subsection 1, such as the financial professional's broker-dealer or investment advisor registered under federal or state securities laws, information and reports that are reasonably appropriate to assist such entity to maintain its supervision system.4. As used in this section:(a) "Comparable standards" means:(1) With respect to broker-dealers and registered representatives of broker-dealers, applicable rules of the Securities and Exchange Commission, or its successor, or the Financial Industry Regulatory Authority, or its successor, pertaining to best interest obligations and supervision of annuity recommendations and sales, including, without limitation, Rules 2111 and 3110 of the Financial Industry Regulatory Authority, and any amendments or successors to such Rules, and Regulation Best Interest of the Securities and Exchange Commission, and any amendments or successor regulations thereto;(2) With respect to investment advisers registered under federal or state securities laws or investment adviser representatives, the fiduciary duties and all other requirements imposed on such investment advisers or investment adviser representatives by contract or under the federal Investment Advisors Act of 1940 or NRS 90.575 or any other applicable laws or regulations of this State relating to securities, including, without limitation, the Form ADV of the Securities and Exchange Commission and interpretations; and(3) With respect to plan fiduciaries or fiduciaries, the duties, obligations, prohibitions and all other requirements attendant to such status under the federal Employee Retirement Income Security Act of 1974, 29 U.S.C. §§ 1001 et seq., or the Internal Revenue Code and any amendments or successor statutes thereto.(b) "Financial professional" means a producer that is regulated and acting as:(1) A broker-dealer registered under federal or state securities laws or a registered representative of a broker-dealer;(2) An investment adviser registered under federal or state securities laws or an investment adviser representative associated with the federal or state registered investment adviser; or(3) A plan fiduciary under section 3(21) of the federal Employee Retirement Income Security Act of 1974 or fiduciary under section 4975(e)(3) of the Internal Revenue Code or any amendments or successor statutes thereto.Nev. Admin. Code § 688A.Sec. 24
Added to NAC by Comm'r of Insurance by R109-23A, eff. 11/15/2024