31.09.12.02

.02 Scope.

A. In General. This chapter applies to each recommendation to purchase, exchange, or replace an annuity made to a consumer by an insurance producer, or an insurer where no insurance producer is involved, that results in the purchase, exchange, or replacement recommended.

B. Exceptions. Unless otherwise specifically included, this chapter does not apply to recommendations involving:

(1) Direct response solicitations where there is no recommendation based on information collected from the consumer pursuant to this chapter; or

(2) Contracts used to fund:

(a) An employee pension or welfare benefit plan that is covered by the Employee Retirement and Income Security Act (ERISA);

(b) A plan described by §401(a), §401(k), §403(b), §408(k), or §408(p) of the Internal Revenue Code, as amended, if established or maintained by an employer;

(c) A government or church plan defined in §414 of the 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 §457 of the Internal Revenue Code;

(d) A nonqualified deferred compensation arrangement established or maintained by an employer or plan sponsor;

(e) A settlement of or assumption of liability associated with personal injury litigation, or any dispute or claim resolution process; or

(f) A formal prepaid funeral contract.