Sec. 3. (a) An insurance producer, or an insurer in a case in which an insurance producer is not involved, shall not recommend to a consumer the:
(1) purchase of an annuity; or
(2) exchange of an annuity that results in another insurance transaction;
that is unsuitable for the consumer.
(b) A determination regarding whether a purchase or an exchange under subsection (a) is unsuitable for a consumer must be made:
(1) based on the facts disclosed by the consumer concerning the consumer's:
(A) investments and other insurance products; and
(B) financial situation and needs; and
(2) according to the rule adopted under section 4 of this chapter.