of this regulation regardless of whether the insurer contracts for

of this regulation regardless of whether the insurer contracts for performance of a function and regardless of the insurer’s compliance with Subparagraph (b) of this paragraph. (b) An insurer’s supervision system under this subsection shall include supervision of contractual performance under this subsection. This includes, but is not limited to, the following: (i) Monitoring and, as appropriate, conducting audits to assure that the contracted function is properly performed; and (iii) Annually obtaining a certification from a senior manager who has responsibility for the contracted function that the manager has a reasonable basis to represent, and does represent, that the function is properly performed. (4) An insurer is not required to include in its system of supervision: (c) A producer’s recommendation to consumers of products other than the annuities offered by the insurer, or (d) Consideration of or comparison to options available to the producer or compensation relating to those options other than annuities or other products offered by the insurer. D. Prohibited Practices. Neither a producer nor an insurer shall dissuade, or attempt to dissuade, a consumer from: (1) Truthfully responding to an insurer’s request for confirmation of the consumer profile information; (2) Filing a complaint; or (3) Cooperating with the investigation of a complaint. E. Safe Harbor. (1) Recommendations and sales of annuities made in compliance with comparable standards shall satisfy the requirements under this regulation. This subsection applies to all recommendations and sales of annuities made by financial professionals in compliance with business rules, controls and procedures that satisfy a comparable standard even if such standard would not otherwise apply to the product or recommendation at issue. However, nothing in this subsection shall limit the insurance commissioner’s ability to investigate and enforce the provisions of this regulation. (2) Nothing in Paragraph (1) shall limit the insurer’s obligation to comply with Rule 18.06(C)(1) of this regulation, although the insurer may base its analysis on information received from either the financial professional or the entity supervising the financial professional. (3) For paragraph (1) to apply, an insurer shall: (a) Monitor the relevant conduct of the financial professional seeking to rely on Paragraph (1) or the entity responsible for supervising the financial professional, such as the financial professional’s broker- dealer or an investment adviser registered under federal securities laws using information collected in the normal course of an insurer’s business; and, (b) Provide to the entity responsible for supervising the financial professional seeking to rely on Paragraph (1) such as the financial professional’s broker-dealer or investment adviser registered under federal securities laws, information and reports that are reasonably appropriate to assist such entity to maintain its supervisory system. (4) For purposes of this subsection, “financial professional” means a producer that is regulated and acting as: (a) A broker-dealer registered under federal securities laws or a registered representative of a broker-dealer. (b) An investment adviser registered under federal securities laws or an investment adviser representative associated with the federal registered investment adviser; or (c) A plan fiduciary under Section 3(21) of the Employee Retirement Income Security Act of 1974 (ERISA) or fiduciary under Section 4975(a)(3) of the Internal Revenue Code (IRC) or any amendments or successor statutes thereto. (5) For purposes of this subsection, “comparable standards” means: (a) With respect to broker-dealers and registered representatives of broker-dealers, applicable SEC and FINRA rules pertaining to best interest obligations and supervision of annuity recommendations and sales, including, but not limited to, Regulation Best Interest and any amendments or successor regulations thereto. (b) With respect to investment advisers registered under federal securities laws or investment adviser representatives, the fiduciary duties and all other requirements imposed on such investment advisers or investment adviser representatives by contract or under the Investment Advisers Act of 1940, including but not limited to, the Form ADV and interpretations, and (c) With respect to plan fiduciaries or fiduciaries, means the duties, obligations, prohibitions, and all other requirements attendant to such status under ERISA or the IRC and any amendments or successor statutes thereto.