South Dakota 2022 Regular Session

South Dakota Senate Bill SB148

Introduced
1/27/22  
Refer
1/27/22  
Report Pass
2/10/22  
Engrossed
2/16/22  
Refer
2/17/22  
Report Pass
2/23/22  
Enrolled
2/24/22  

Caption

Revise annuity sales standards.

Impact

The implementation of SB148 is expected to significantly change the regulatory landscape concerning how annuities are sold in the state. By enforcing standards such as requiring producers to complete specific training and adhere to best interest obligations, the bill aims to minimize risks associated with mis-selling and enhance the accountability of financial professionals. Additionally, the corrective actions mandated for violations will likely encourage a culture of compliance within the insurance industry, benefiting consumers by ensuring that they receive products that are genuinely suited to their financial needs.

Summary

Senate Bill 148 aims to revise the sales standards for annuities, enhancing consumer protection by establishing rigorous guidelines for producers recommending these financial products. The bill mandates that producers act in the best interest of consumers when making recommendations, taking into account the consumers' financial situations, needs, and objectives. Moreover, it necessitates a supervisory structure for insurers to ensure compliance with these standards. Under SB148, both producers and insurers are obligated to maintain records and provide disclosures related to sales practices and compensation to uphold transparency in annuity transactions.

Sentiment

The sentiment surrounding SB148 appears to be generally supportive among consumer advocacy groups, who view the bill as a necessary step toward improved consumer protection in the annuity market. By countering potential conflicts of interest and ensuring that producers provide clear information regarding compensation and product features, the bill seeks to promote trust in the financial industry. However, some industry representatives may voice concerns over the increased regulatory burden and potential implications for their business practices, especially regarding the obligations imposed by the new training and compliance standards.

Contention

Notable points of contention within the discussions regarding SB148 include the balance between consumer protection and the regulatory burden placed on producers and insurers. Some stakeholders argue that while the intention of protecting consumers is laudable, the new requirements might lead to higher costs for compliance, ultimately impacting the availability and pricing of annuity products. The effectiveness of the training programs and the practical implications of enforcing these new standards in the day-to-day interactions between producers and consumers also remain pivotal concerns that could influence the bill's acceptance and implementation.

Companion Bills

No companion bills found.

Previously Filed As

SD HB1777

Relating to disclosures and standards required for certain annuity transactions and benefits under certain annuity contracts.

SD SB263

Insurance: annuities and life insurance policies.

SD SB536

Relating to annuities; and prescribing an effective date.

SD HB1091

Amend provisions of the insurance statutes regarding producer recommendations and responsibilities.

SD HB1293

Relating to the sale and marketing of life insurance and annuities.

SD S4129

Establishes requirements regarding processing of requests to surrender or annuitize matured annuities.

SD HB2277

Relating to life settlements and the sale, exchange, or replacement of life insurance and annuity contracts.

SD SB3079

Relating To Insurance.

SD HB2111

Relating To Insurance.

SD AB1398

Annuities: cash surrender benefits.

Similar Bills

OR SB536

Relating to annuities; and prescribing an effective date.

SD HB1091

Amend provisions of the insurance statutes regarding producer recommendations and responsibilities.

CA SB263

Insurance: annuities and life insurance policies.

TX HB1777

Relating to disclosures and standards required for certain annuity transactions and benefits under certain annuity contracts.

HI HB2111

Relating To Insurance.