191—15.70 (507B) Definitions. For purposes of this division:
“Annuity” means an annuity that is an insurance product under state law, individually solicited, whether the product is classified as an individual or group annuity.
“Continuing education credit”  or “CE credit”  means one credit as defined in rule 191—11.2(505,522B).
“Continuing education provider”  or “CE provider”  means a CE provider as defined in rule 191—11.2(505,522B).
“FINRA” means the Financial Industry Regulatory Authority or a succeeding agency.
“Insurance producer” means a person required to be licensed under the laws of this state to sell, solicit or negotiate insurance, including annuities.
“Insurer” means a company required to be licensed under the laws of this state to provide insurance products, including annuities.
“Recommendation” means advice provided by an insurance producer, or an insurer where no producer is involved, to an individual consumer that results in a purchase, exchange or replacement of an annuity in accordance with that advice.
“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 if there is no producer, that, by reason of the transaction, an existing policy or contract has been or is to be:
	  1. 	 Lapsed, forfeited, surrendered or partially surrendered, assigned to the replacing insurer or otherwise terminated;
	  2. 	 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;
	  3. 	 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;
	  4. 	 Reissued with any reduction in cash value; or
	  5. 	 Used in a financed purchase.
“Suitability information” means information that is reasonably appropriate to determine the suitability of a recommendation, including the following:
	  1. 	 Age;
	  2. 	 Annual income;
	  3. 	 Financial situation and needs, including the financial resources used for the funding of the annuity;
	  4. 	 Financial experience;
	  5. 	 Financial objectives;
	  6. 	 Intended use of the annuity;
	  7. 	 Financial time horizon;
	  8. 	 Existing assets, including investment and life insurance holdings;
	  9. 	 Liquidity needs;
	  10. 	 Liquid net worth;
	  11. 	 Risk tolerance; and
	  12. 	 Tax status.
[ARC 8934B, IAB 7/14/10, effective 1/1/11]