COMAR 31.09.12.07. Safe Harbor

A. Recommendations and sales of annuities made in compliance with comparable standards shall satisfy the requirements under this chapter.

B. This regulation 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.

C. Nothing in this regulation shall limit the Commissioner’s ability to investigate and enforce the provisions of this chapter.

D. Nothing in §A of this regulation shall limit the insurer’s obligation to comply with Regulation .05A of this chapter , although the insurer may base its analysis on information received from either the financial professional or the entity supervising the financial professional.

E. For §A of this regulation to apply, an insurer shall:

(1) Monitor the relevant conduct of the financial professional seeking to rely on §A of this regulation 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

(2) Provide to the entity responsible for supervising the financial professional seeking to rely on §A of this regulation , 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 supervision system.

F. A financial professional who is not explicitly acting in compliance with the relevant comparable standards is not eligible for the safe harbor under §A of this regulation and is subject to compliance with the requirements of this chapter.