33-20-804. Definitions. As used in this part, the following definitions apply:

Terms Used In Montana Code 33-20-804

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Contract: A legal written agreement that becomes binding when signed.
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.

(1) ”Annuity” means a fixed annuity that is individually solicited, regardless of whether the product is classified as an individual or group annuity.

(2) ”Insurance producer”, in addition to the definition in 33-17-102, includes an insurance producer licensed to sell, solicit, or negotiate annuities.

(3) ”Insurer”, in addition to the definition in 33-1-201, includes an insurer providing annuity products.

(4) ”Recommendation” means advice provided by an insurance producer or by an insurer when an insurance producer is not involved to an individual consumer that results in a purchase, exchange, or replacement of an annuity in accordance with that advice.

(5) ”Replacement” means a transaction in which a new policy or contract is to be purchased, and it is known or should be known to the proposing producer or to the proposing insurer when an insurance producer is not involved that by reason of the transaction, an existing policy or contract has been or is to be:

(a) lapsed, forfeited, surrendered or partially surrendered, assigned to the replacing insurer, or otherwise terminated;

(b) 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;

(c) amended so as to effect either a reduction in benefits or in the term for which coverage would otherwise remain in force or for which benefits would be paid;

(d) reissued with any reduction in cash value; or

(e) used in a financed purchase.

(6) ”Suitability information” means information that is reasonably appropriate to determine the suitability of a recommendation, including the following:

(a) age;

(b) annual income;

(c) financial situation and needs, including the financial resources used for the funding of the annuity;

(d) financial experience;

(e) financial objectives;

(f) intended use of the annuity;

(g) financial time horizon;

(h) existing assets, including investment and life insurance holdings;

(i) liquidity needs;

(j) liquid net worth;

(k) risk tolerance;

(l) tax status; and

(m) whether the consumer has a reverse mortgage.