AB654,12,106 (b) If a consumer refuses to provide consumer profile information, obtain a
7signed statement from the consumer, on a form substantially similar to Appendix B
8of the National Association of Insurance Commissioners Annuity Suitability Model
9Regulation that shall be posted on the office's Internet site, that documents all of the
10following:
AB654,12,1111 1. A consumer's refusal to provide consumer profile information.
AB654,12,1412 2. A consumer's understanding of the ramifications of not providing his or her
13consumer profile information or of providing insufficient consumer profile
14information.
AB654,12,2015 (c) If an annuity is not recommended, obtain a signed statement from the
16consumer, on a form substantially similar to Appendix C of the National Association
17of Insurance Commissioners Annuity Suitability Model Regulation that shall be
18posted on the office's Internet site, that acknowledges an annuity transaction is not
19recommended if the consumer decides to enter into an annuity transaction that is not
20based on the intermediary's recommendation.
AB654,16 21Section 16 . 628.347 (3) (a) 4. of the statutes is amended to read:
AB654,13,522 628.347 (3) (a) 4. Maintain procedures for review of each recommendation
23before issuance of an annuity that are designed to ensure that there is a reasonable
24basis to determine that a recommendation is suitable would effectively address a
25consumer's financial situation, insurance needs, and financial objectives
. An

1insurer's procedures may apply a screening system for the purpose of identifying
2selected transactions for additional review. An insurer's procedures may be
3accomplished electronically or through other means, including physical review. An
4electronic or other system may be designed to require additional review only of those
5transactions identified for additional review by the selection criteria.
AB654,17 6Section 17 . 628.347 (3) (a) 5. of the statutes is amended to read:
AB654,13,147 628.347 (3) (a) 5. Maintain reasonable procedures to detect recommendations
8that are not suitable do not comply with subs. (2) to (2e), which may include
9confirmation of consumer suitability profile information, systematic customer
10surveys, interviews, confirmation letters, producer statements or attestations, and
11programs of internal monitoring. Nothing in this subdivision prevents an insurer
12from complying with this subdivision by applying sampling procedures or by
13confirming suitability consumer profile information after issuance or delivery of the
14annuity, or both.
AB654,18 15Section 18 . 628.347 (3) (a) 7., 8. and 9. of the statutes are created to read:
AB654,13,1916 628.347 (3) (a) 7. Establish and maintain reasonable procedures to assess,
17prior to or upon issuance or delivery of an annuity, whether an insurance
18intermediary has provided to a consumer the information required to be provided
19under this section.
AB654,13,2120 8. Establish and maintain reasonable procedures to identify and address
21suspicious refusals by consumers to provide consumer profile information.
AB654,14,322 9. Establish and maintain reasonable procedures to identify and eliminate any
23sales contests, sales quotas, bonuses, and noncash compensation that are based on
24the sales of specific annuities within a limited period of time. Nothing in this
25subdivision prohibits the receipt of health insurance, office rent, office support,

1retirement benefits, or other employee benefits by employees so long as those
2benefits are not based upon the volume of sales of a specific annuity within a limited
3period of time.
AB654,19 4Section 19 . 628.347 (3) (am) of the statutes is created to read:
AB654,14,95 628.347 (3) (am) Except as permitted under sub. (2b) (h), an insurer may not
6issue an annuity recommended to a consumer unless there is a reasonable basis to
7believe the annuity will effectively address the particular consumer's financial
8situation, insurance needs, and financial objectives based on the consumer's
9consumer profile information.
AB654,20 10Section 20 . 628.347 (3) (c) of the statutes is amended to read:
AB654,14,1511 628.347 (3) (c) An insurer is not required to include in its system of supervision
12an insurance intermediary's recommendations to consumers of products other than
13the annuities offered by the insurer or include consideration of, or comparison to,
14options available to the intermediary or compensation relating to those options other
15than annuities or other products offered by the insurer
.
AB654,21 16Section 21 . 628.347 (3m) (a) of the statutes is amended to read:
AB654,14,1817 628.347 (3m) (a) Truthfully responding to an insurer's request for confirmation
18of suitability consumer profile information.
AB654,22 19Section 22 . 628.347 (4) of the statutes is repealed and recreated to read:
AB654,14,2520 628.347 (4) Comparable standards. (a) Recommendations and sales of
21annuities made in compliance with comparable standards shall satisfy the
22requirements of this section. This subsection applies to all recommendations and
23sales of annuities made by financial professionals in compliance with business rules,
24controls, and procedures that satisfy a comparable standard even if the standard
25does not otherwise apply to the annuity or recommendation.
AB654,15,2
1(b) Nothing in this subsection limits the commissioner's ability to investigate
2and enforce the provisions of this section.
AB654,15,73 (c) Nothing in par. (a) limits an insurer's obligation to comply with sub. (3) (am),
4although the insurer may base its analysis on information received from either the
5financial professional or the entity responsible for supervising the financial
6professional, including the financial professional's broker-dealer or an investment
7adviser registered under federal or state securities law.
AB654,15,88 (d) In order for par. (a) to apply, an insurer shall do all of the following:
AB654,15,139 1. Monitor the relevant conduct of the financial professional or the entity
10responsible for supervising the financial professional, including the financial
11professional's broker-dealer or an investment adviser registered under federal or
12state securities law, using information collected in the normal course of an insurer's
13business.
AB654,15,1714 2. Provide to the entity responsible for supervising the financial professional,
15including the financial professional's broker-dealer or investment adviser
16registered under federal or state securities law, the information and reports that are
17reasonably appropriate to assist the entity with maintaining its supervision system.
AB654,23 18Section 23. 628.347 (4m) (b) 3. f. of the statutes is amended to read:
AB654,15,2019 628.347 (4m) (b) 3. f. Appropriate standard of conduct, sales practices, and
20replacement and disclosure requirements.
AB654,24 21Section 24 . 628.347 (4m) (b) 10. of the statutes is created to read:
AB654,15,2522 628.347 (4m) (b) 10. An intermediary who has completed an annuity training
23course approved by the commissioner prior to the effective date of this subdivision
24.... [LRB inserts date], shall, within 6 months of the effective date of this subdivision
25.... [LRB inserts date], complete any of the following:
AB654,16,1
1a. A 4 credit training course approved by the commissioner.
AB654,16,52 b. An additional one-time one credit training course approved by the
3commissioner and provided by an education provider, who is approved by the
4commissioner, on appropriate sales practices and replacement and disclosure
5requirements under this section.
AB654,25 6Section 25 . 628.347 (4m) (b) 11. of the statutes is created to read:
AB654,16,107 628.347 (4m) (b) 11. Satisfaction of the components of the training
8requirements of a course or courses with components substantially similar to the
9requirements of this paragraph satisfies the training requirements of this
10paragraph.
AB654,26 11Section 26 . 628.347 (9) and (10) of the statutes are created to read:
AB654,16,1612 628.347 (9) No private cause of action. Nothing in this section may be
13construed to create or imply a private cause of action for a violation of this section
14or to subject an insurance intermediary or insurer to civil liability under the best
15interest standard of care under sub. (2) or under standards governing the conduct
16of a fiduciary or a fiduciary relationship.
AB654,16,23 17(10) No additional licensure. Nothing in this section may be construed to
18require an insurance intermediary to obtain any license, including a securities
19license, other than an insurance intermediary license with the appropriate line of
20authority to sell, solicit, or negotiate insurance in this state in order to fulfill the
21duties and obligations contained in this section so long as the insurance
22intermediary does not give advice or provide services that are otherwise subject to
23securities laws or engage in any other activity requiring another professional license.
AB654,27 24Section 27 . Effective date.
AB654,17,2
1(1) This act takes effect on the first day of the 6th month beginning after
2publication.
AB654,17,33 (End)
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