Definitions

As used in sections 38a-432a-1 to 38a-432a-8, inclusive, of the Regulations of Connecticut State Agencies. (1) "Agency" means a person that employs one or more insurance producers; (2) "Annuity" means "annuities" as defined in section 38a-1 of the Connecticut General Statutes, that is or are individually solicited, whether the product is classified as an individual or group annuity; (3) "Commissioner" means the Insurance Commissioner. (4) "Continuing education credit" or "CE credit" means a "credit hour" as defined in section 38a-782a-1 of the Regulations of Connecticut State Agencies; (5) "Continuing education provider" or "CE provider" means a person that is approved to sponsor continuing education courses pursuant to section 38a-782a-4 of the Regulations of Connecticut State Agencies; (6) "FINRA" means the federal Financial Industry Regulatory Authority or a succeeding agency; (7) "Insurance producer" means "Insurance producer" as defined in section 38a-702a of the Connecticut General Statutes; (8) "Insurer" means "insurer" as defined in section 38a-1 of the Connecticut General Statutes; (9) "Person" means "person" as defined in section 38a-702a of the Connecticut General Statutes; (10) "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; (11) "Replacement" means a transaction in which a new annuity 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 annuity policy or contract has been or is to be: (A) Lapsed, forfeited, surrendered or partially surrendered, assigned to the replacing insurer or otherwise terminated; (B) 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; (C) 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; (D) Reissued with any reduction in cash value; or (E) Used in a financed purchase; and (12) "Suitability information" means information that is reasonably appropriate in determining 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 investment and life insurance holdings; (I) Liquidity needs; (J) Risk tolerance; and (K) Tax status.