Section R590-230-2 - Purpose and Scope(1) The purpose of this rule is to:(a) require a producer to act in the best interest of the consumer when making a recommendation of an annuity; and(b) require an insurer to establish and maintain a system to supervise recommendations so the insurance needs and financial objectives of a consumer at the time of the transaction are effectively addressed.(2) Nothing herein shall be construed to: (a) create or imply a private cause of action for a violation of this rule; or(b) subject a producer to civil liability under the best interest standard of care under Section R590-230-4 or under standards governing the conduct of a fiduciary or a fiduciary relationship. (3)(a) This rule applies to any sale or recommendation of an annuity.(b) Unless otherwise specifically included, this rule does not apply to a transaction involving:(i) a direct response solicitation where there is no recommendation based on information collected from the consumer pursuant to this rule;(ii) a contract used to fund: (A) an employee pension or welfare benefit plan that is covered by the Employee Retirement and Income Security Act of 1974, as amended;(B) a plan described by Section 401(a), 401(k), 403(b), 408(k), or 408(p), Internal Revenue Code, as amended, if established or maintained by an employer;(C) a government or church plan defined in Section 414, Internal Revenue Code, a government or church welfare benefit plan, or a deferred compensation plan of a state or local government or tax exempt organization under Section 457, Internal Revenue Code; or(D) a nonqualified deferred compensation arrangement established or maintained by an employer or plan sponsor;(iii) a settlement of or an assumption of liabilities associated with personal injury litigation or any dispute or claim resolution process; or(iv) a formal prepaid funeral contract.Utah Admin. Code R590-230-2
Amended by Utah State Bulletin Number 2023-24, effective 12/8/2023