South Dakota Codified Laws 58-33A-16.3. Considerations for annuity replacement or exchange
In the case of an exchange or replacement of an annuity, the producer shall consider the whole transaction, which include taking into consideration whether:
(1) The consumer will incur a surrender charge, be subject to the commencement of a new surrender period, lose existing benefits, such as death, living, or other contractual benefits, or be subject to increased fees, investment advisory fees, or charges for riders and similar product enhancements;
Terms Used In South Dakota Codified Laws 58-33A-16.3
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
(2) The replacing product would substantially benefit the consumer in comparison to the replaced product over the life of the product; and
(3) The consumer has had another annuity exchange or replacement and, in particular, an exchange or replacement within the preceding sixty months.
Source: SL 2022, ch 186, § 9, eff. Jan. 1, 2023.