Current through Reg. 50, No. 13; March 28, 2025
(a) Before the
recommendation or sale of an annuity, an agent must provide to the consumer a
form that meets the requirements of Insurance Code §
1115.0514(b),
concerning Disclosure Obligation. The agent must use:
(1) form FIN194 (07/21), which is adopted by
reference and is available on the department's form website;
(2) the Insurance Agent (Producer) Disclosure
for Annuities form, adopted by the National Association of Insurance
Commissioners in the Suitability in Annuity Transactions Model Regulation;
or
(3) another form that:
(A) meets the requirements of Insurance Code
§
1115.0514(b)
and is substantially similar to the form specified in paragraph (2) of this
subsection;
(B) is understandable
to a person with an 8th-grade reading level; and
(C) is written in plain language, consistent
with federal plain language recommendations from the Plain Language Action and
Information Network.
(b) If, at the time of a recommendation or
sale of an annuity, a consumer has not given an agent some or all of the
information needed to decide whether the annuity effectively meets the
consumer's needs, the agent must obtain a statement signed by the consumer on a
form that meets the requirements of Insurance Code §
1115.0516(2),
concerning Documentation Obligation. The agent must use:
(1) form FIN195 (07/21), which is adopted by
reference and is available on the department's form website;
(2) the Consumer Refusal to Provide
Information form, adopted by the National Association of Insurance
Commissioners in the Suitability in Annuity Transactions Model Regulation;
or
(3) another form that:
(A) is substantially similar to the form
specified in paragraph (2) of this subsection;
(B) is understandable to a person with an
8th-grade reading level; and
(C) is
written in plain language, consistent with federal plain language
recommendations from the Plain Language Action and Information
Network.
(c)
At the time of a recommendation or sale of an annuity, if a consumer decides to
enter into an annuity transaction that is not based on the agent's
recommendation, the agent must obtain a statement signed by the consumer that
meets the requirements of Texas Insurance Code §
1115.0516(3).
The agent must use:
(1) form FIN196 (07/21),
which is adopted by reference and is available on the department's form
website;
(2) the Consumer Decision
to Purchase an Annuity Not Based on a Recommendation form, adopted by the
National Association of Insurance Commissioners in the Suitability in Annuity
Transactions Model Regulation; or
(3) another form that:
(A) is substantially similar to the form
specified in paragraph (2) of this subsection;
(B) is understandable to a person with an
8th-grade reading level; and
(C) is
written in plain language, consistent with federal plain language
recommendations from the Plain Language Action and Information
Network.
