KANSAS INSURANCE DEPARTMENT

 

Proposed Regulation K.A.R. 40-2-14a

 

 

K.A.R. 40-2-14a.  Life insurance and annuities; recommendation standards.  (a)  In recommending to a consumer the purchase or surrender of any variable life insurance or variable annuity product, each insurance producer, or insurer if no producer if involved, shall have reasonable grounds for believing that the recommendation is suitable for that consumer based on the facts disclosed by the consumer about the consumer’s financial situation and needs.

(b)       Before recommending to a consumer a transaction or series of transactions involving the purchase or surrender of any variable life insurance or variable annuity product, each producer, or insurer, if no producer is involved, shall make reasonable efforts to obtain the following from the consumer:

(1)       Information concerning the following:

(A)       The consumer’s financial status;

(B)       the consumer’s tax status; and

(C)       the consumer’s investment objectives; and

(2)       any other information considered by the producer or insurer to be a reasonable basis for making each recommendation to the consumer. The Kansas insurance department’s "opinion and memorandum regarding annuity transactions," dated June 8, 2005, is hereby adopted by reference.  (Authorized by K.S.A. 40-103 and 40-2404a; implementing K.S.A. 40-222, 40-2403, and K.S.A. 2002 2004 Supp. 40-2404;  effective  May 20, 2005; amended P-____________.)