SB644,10,1412 2. An affirmative statement on whether the intermediary is licensed and
13authorized to sell fixed annuities, fixed indexed annuities, variable annuities, life
14insurance, mutual funds, stocks, bonds, and certificates of deposit.
SB644,10,1715 3. An affirmative statement describing the insurers for which the intermediary
16is authorized, contracted, appointed, or otherwise able to sell insurance products,
17using whichever of the following descriptions is appropriate:
SB644,10,1818 a. From one insurer.
SB644,10,1919 b. From 2 or more insurers.
SB644,10,2020 c. From 2 or more insurers although primarily contracted with one insurer.
SB644,11,221 4. A description of the sources and types of cash compensation and noncash
22compensation to be received by the intermediary, including whether the
23intermediary is to be compensated for the sale of a recommended annuity by
24commission as part of a premium or other remuneration received from the insurer

1or another intermediary, or by fee as a result of a contract for advice or consulting
2services.
SB644,11,43 5. A notice of the consumer's right to request additional information regarding
4cash compensation.
SB644,11,65 (b) Upon request of the consumer or the consumer's designated representative,
6an insurance intermediary shall disclose all of the following:
SB644,11,87 1. A reasonable estimate of the amount of cash compensation to be received by
8the intermediary, which may be stated as a range of amounts or percentages.
SB644,11,119 2. Whether the cash compensation is a one-time or multiple occurrence amount
10and, if a multiple occurrence amount, the frequency and amount of the occurrence,
11which may be stated as a range of amounts or percentages.
SB644,11,1912 (c) Prior to or at the time of the recommendation or sale of an annuity, the
13insurance intermediary shall have a reasonable basis to believe the consumer has
14been informed of various features of the annuity, including the potential surrender
15period and surrender charges, potential tax penalty if the consumer sells, exchanges,
16surrenders, or annuitizes the annuity, mortality and expense fees, investment
17advisory fees, annual fees, potential charges for and features of riders and other
18options, limitations on interest returns, potential changes in non-guaranteed
19elements of the annuity, insurance and investment components, and market risk.
SB644,14 20Section 14. 628.347 (2d) of the statutes is created to read:
SB644,11,2321 628.347 (2d) Conflict of interest obligation. An insurance intermediary
22shall identify and avoid or reasonably manage and disclose material conflicts of
23interest, including material conflicts related to an ownership interest.
SB644,15 24Section 15. 628.347 (2e) of the statutes is created to read:
SB644,12,3
1628.347 (2e) Documentation obligation. An insurance intermediary shall, at
2the time of making a recommendation or sale of an annuity, do all of the following,
3as applicable:
SB644,12,54 (a) If an annuity is recommended, make a written record of any
5recommendation and the basis for the recommendation subject to this section.
SB644,12,106 (b) If a consumer refuses to provide consumer profile information, obtain a
7signed statement from the consumer, on a form substantially similar to Appendix B
8of the National Association of Insurance Commissioners Annuity Suitability Model
9Regulation that shall be posted on the office's Internet site, that documents all of the
10following:
SB644,12,1111 1. A consumer's refusal to provide consumer profile information.
SB644,12,1412 2. A consumer's understanding of the ramifications of not providing his or her
13consumer profile information or of providing insufficient consumer profile
14information.
SB644,12,2015 (c) If an annuity is not recommended, obtain a signed statement from the
16consumer, on a form substantially similar to Appendix C of the National Association
17of Insurance Commissioners Annuity Suitability Model Regulation that shall be
18posted on the office's Internet site, that acknowledges an annuity transaction is not
19recommended if the consumer decides to enter into an annuity transaction that is not
20based on the intermediary's recommendation.
SB644,16 21Section 16 . 628.347 (3) (a) 4. of the statutes is amended to read:
SB644,13,522 628.347 (3) (a) 4. Maintain procedures for review of each recommendation
23before issuance of an annuity that are designed to ensure that there is a reasonable
24basis to determine that a recommendation is suitable would effectively address a
25consumer's financial situation, insurance needs, and financial objectives
. An

1insurer's procedures may apply a screening system for the purpose of identifying
2selected transactions for additional review. An insurer's procedures may be
3accomplished electronically or through other means, including physical review. An
4electronic or other system may be designed to require additional review only of those
5transactions identified for additional review by the selection criteria.
SB644,17 6Section 17 . 628.347 (3) (a) 5. of the statutes is amended to read:
SB644,13,147 628.347 (3) (a) 5. Maintain reasonable procedures to detect recommendations
8that are not suitable do not comply with subs. (2) to (2e), which may include
9confirmation of consumer suitability profile information, systematic customer
10surveys, interviews, confirmation letters, producer statements or attestations, and
11programs of internal monitoring. Nothing in this subdivision prevents an insurer
12from complying with this subdivision by applying sampling procedures or by
13confirming suitability consumer profile information after issuance or delivery of the
14annuity, or both.
SB644,18 15Section 18 . 628.347 (3) (a) 7., 8. and 9. of the statutes are created to read:
SB644,13,1916 628.347 (3) (a) 7. Establish and maintain reasonable procedures to assess,
17prior to or upon issuance or delivery of an annuity, whether an insurance
18intermediary has provided to a consumer the information required to be provided
19under this section.
SB644,13,2120 8. Establish and maintain reasonable procedures to identify and address
21suspicious refusals by consumers to provide consumer profile information.
SB644,14,322 9. Establish and maintain reasonable procedures to identify and eliminate any
23sales contests, sales quotas, bonuses, and noncash compensation that are based on
24the sales of specific annuities within a limited period of time. Nothing in this
25subdivision prohibits the receipt of health insurance, office rent, office support,

1retirement benefits, or other employee benefits by employees so long as those
2benefits are not based upon the volume of sales of a specific annuity within a limited
3period of time.
SB644,19 4Section 19 . 628.347 (3) (am) of the statutes is created to read: