D.C. Mun. Regs. tit. 26, r. 26-A8499

Current through Register Vol. 71, No. 49, December 6, 2024

Rule 26-A8499 - DEFINITIONS

8499

For the purposes of this chapter, the term:

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

Commissioner means the Commissioner of the District of Columbia Department of Insurance, Securities and Banking.

Continuing education credit or CE credit means one continuing education credit as provided for in 26 DCMR §§ 100, et seq.

Continuing education provider or CE provider means an individual or entity that is approved to offer continuing education courses pursuant to 26 DCMR §§ 100, et seq.

Department means the District of Columbia Department of Insurance, Securities and Banking.

FINRA means the Financial Industry Regulatory Authority.

Insurer means a company required to be licensed under the laws of the District of Columbia to provide insurance products, including annuities.

Insurance producer means a person required to be licensed under the laws of the District of Columbia to sell, solicit or negotiate insurance, including annuities.

Recommendation means advice provided by an insurance producer, or an insurer where 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:

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

(B) 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;

(C) 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;

(D) Reissued with any reduction in cash value; or

(E) Used in a financed purchase.

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

(A) Age;

(B) Annual income;

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

(D) Financial experience;

(E) Financial objectives;

(F) Intended use of the annuity;

(G) Financial time horizon;

(H) Existing assets, including investment and life insurance holdings;

(I) Liquidity needs;

(J) Liquid net worth;

(K) Risk tolerance; and

(L) Tax status

D.C. Mun. Regs. tit. 26, r. 26-A8499

Source: Notice of Final Rulemaking published at 57 DCR 12209, 12216 (December 24, 2010)

Authority: The Commissioner of the Department of Insurance, Securities, and Banking, pursuant to the authority set forth in section 125 of the Insurance Trade and Economic Development Amendment Act of 2000, effective April 3, 2001 (D.C. Law 13-265; D.C. Official Code § 31-2231.25 (2009 Repl.)).