The regulation sets forth standards and procedures for insurers and insurance producers relating to the purchase or exchange of annuity products involving senior consumers as follows:

In recommending to a senior consumer the purchase of an annuity or exchange of an annuity that results in another insurance transaction, the insurance producer, or the insurer where no producer is involved, must have reasonable grounds for believing that the recommendation is suitable for the senior consumer on the basis of the facts disclosed by the senior consumer as to his or her investments and other insurance products and as to his or her financial situation and needs.

The Need for Information

Because, as noted, annuities are such a long-term financial commitment, before the purchase or exchange of an annuity based on an agent's or broker's recommendation, there must be reasonable efforts to obtain information about the senior consumer, including:

• Age
• Financial Status
• Tax Status
• Needs
• Investment Objectives
• Other Relevant Information

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