Rule 80-5-3-.08 - Disclosures(1) At the time of sale of an annuity product, the written disclosure below or one which contains all its elements shall be made. The annuity products described or referred to: (a) Are not deposits and are not insured by the FDIC;(b) Are not obligations of or guaranteed by the financial institution; and(c) Are subject to investment risk, including interest rate risk. The market value of the investment may fluctuate, causing possible loss of the principal amount invested; and(d) Are unrelated to and not a condition to the provision or term of any banking service or activity.(2) At the time of sale of an annuity product, the insurance/annuity agent shall deliver to and receive back from the customer a disclosure conforming to paragraph (1) of this Rule accompanied by a signed statement that the customer has read and understands the meaning of the disclosures. A copy of this signed statement shall be given to the customer and to the financial institution.(3) The disclosures given to the customer shall be conspicuous and presented in a clear and concise manner, with no qualifying remarks.(4) In addition to paragraph (1) of this Rule, the insurance/annuity agent shall, during discussions of annuity products with the customer, make these disclosures orally.(5) Where applicable, the following disclosures shall also be included in the written disclosure given to the customer: (a) The existence of an advisory or other material relationship between the financial institution, or an affiliate of the financial institution, and a company whose products are offered or sold by the insurance agent on the premises of the financial institution;(b) The existence of any affiliate or subsidiary relationship between the financial institution and the insurance agent that is providing such insurance agent services on the premises of the financial institution; or(c) The existence of any fees, penalties or surrender charges associated with the annuity product that is being offered or sold(6) The insurance/annuity agents shall identify themselves to the customer as being either an employee of the financial institution or an independent licensed insurance/annuity agent.Ga. Comp. R. & Regs. R. 80-5-3-.08
O.C.G.A. Secs. 7-1-61, 7-1-261(11), 7-1-288.
Original Rule entitled "Disclosures" adopted. F. July 18, 1996; eff. August 7, 1996.