31.09.12.03

.03 Definitions.

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) "Annuity" means a fixed annuity or variable annuity that is individually solicited, whether the product is classified as an individual or group annuity.

(2) "Consumer" means an individual who seeks to obtain, obtains, or has obtained an annuity covered by this chapter either directly from an insurer or from an insurance producer.

(3) “Continuing education credit” means one continuing education credit hour as defined in COMAR 31.03.02.02B(5).

(4) “Continuing education provider” means a sponsor as defined in COMAR 31.03.02.02B(12).

(5) “FINRA” means the Financial Industry Regulatory Authority or a succeeding agency.

(6) "Insurance producer" has the meaning stated in Insurance Article, §1-101(u), Annotated Code of Maryland.

(7) "Insurer" has the meaning stated in Insurance Article, §1-101(v), Annotated Code of Maryland.

(8) "Recommendation" means advice provided by an insurance producer, or an insurer where no insurance producer is involved, to an individual consumer that results in a purchase, exchange, or replacement of an annuity in accordance with that advice.

(9) “Replacement” has the meaning stated in COMAR 31.09.05.03B(11).

(10) “Suitability information” means information that is reasonably appropriate to determine the suitability of a recommendation, including the following:

(a) Age;

(b) Annual income;

(c) Financial situation and needs, including the financial resources used for the funding of the annuity;

(d) Financial experience;

(e) Financial objectives;

(f) Intended use of the annuity;

(g) Financial time horizon;

(h) Existing assets, including investments and life insurance holdings;

(i) Liquidity needs;

(j) Liquid net worth;

(k) Risk tolerance; and

(l) Tax status.