Hawaii Regulation of Annuities

Overview

Every state has regulations that govern the marketing and sale of annuities. Hawaii is no exception. The foundation for these regulations is the NAIC’s “Suitability in Annuity Transactions Model Regulation.” This model regulation was originally created in 2003 and then revised in 2006. Its purpose is to encourage both insurers and producers to focus on providing informed and professional client service with respect to the recommendation and sale of annuity products.

This course provides an overview of Hawaii’s laws and regulations as they pertain to the sale of annuity contracts and the standards to which both annuity producers and annuity issuers must comply. Codified as part of the state’s insurance laws, these standards serve one primary purpose: to provide protection for annuity consumers. They do so by setting forth requirements that apply to the suitability of annuity recommendations and sales, the disclosures that must be made to annuity buyers, and the rules that must be followed when an annuity exchange or replacement is proposed or transacted.

Learning Objectives

Upon conclusion of this course, students should be able to:

  • understand the meaning of “suitability” and its application to the marketing and sale of annuity products
  • know key standards relevant to the marketing and sale of annuity products
  • be able to explain how suitability is determined for individual annuity prospects
  • know the required disclosure documents that must be given to annuity buyers
  • understand the requirements imposed on parties associated with replacement transactions and the standard by which suitable replacement and exchanges are measured

Designed For

Life and health insurance producers; financial planners and advisors
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