§431:10D-622  Definitions.  For the purposes of this part:

     "Annuity" means an annuity that is an insurance product under state law that is individually solicited, whether the product is classified as an individual or group annuity.

     "Approved continuing education course provider" means an individual or entity that is approved to offer continuing education courses pursuant to article 9A.

     "Continuing education credit" means one continuing education credit hour.  For the purposes of this paragraph, "credit hour" has the same meaning as set forth in section 431:9A-102.

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

     "Insurer" means a company required to be licensed under the laws of this State to provide insurance products, 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 for the purchase of a new policy or contract that the proposing producer, or the proposing insurer if there is no producer, knows or has reason to know will cause an existing policy or contract to be:

     (1)  Terminated, lapsed, forfeited, or surrendered, partially surrendered, or assigned to the replacing insurer;

     (2)  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;

     (3)  Amended to effect a reduction in either benefits or the term for which coverage would otherwise remain in force or for which benefits would be paid;

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

     (5)  Used in a finance purchase.

     "Suitability information" means information about the consumer that is reasonably related to the determination of the appropriateness of a recommendation, including the following:

     (1)  Age;

     (2)  Annual income;

     (3)  Financial situation and needs, including the financial resources used for funding the annuity at issue;

     (4)  Financial experience;

     (5)  Financial objectives;

     (6)  Intended use of the annuity;

     (7)  Financial time horizon;

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

     (9)  Liquidity needs;

    (10)  Liquid net worth;

    (11)  Risk tolerance; and

    (12)  Tax status. [L 2007, c 257, pt of §2; am L 2011, c 108, §4; am L 2012, c 66, §13]