1-Hour NAIC's Best Interest Standard for Annuity Transactions

Overview

For today's insurance producer, there is a recognized trend from serving clients and consumers in the role of a salesperson to one that addresses their needs and objectives through professional advice and guidance. This is in keeping with many changes in the market and industry, including greater consumer service expectations and the introduction of more sophisticated—and complex—products. It was in recognition of these changes that the NAIC revised the standards and practices associated with recommending and selling annuity products.

This course provides a thorough understanding of the NAIC's standards under its revised 2020 "Suitability in Annuity Transactions" model regulation, which includes a new best interest standard.

Learning Objectives

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

  • articulate what the regulation means by "best interest standard"
  • describe how producers can meet the best interest standard
  • explain the associated producer obligations that pertain to care, disclosure, conflicts of interest, and documentation
  • outline the requirements that insurers have to create and maintain a system of supervision to ensure compliance with the model regulation
  • cite the types of financial professionals who may qualify for a "safe harbor" exemption to the NAIC's model regulation and the comparable standards they have to meet

Designed For

Life insurance producers and financial professionals
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