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 requirements under its revised 2020 “Suitability in Annuities Transactions” model regulation.  This revised model includes a new best interest standard and describes how producers and insurers can meet this standard.  The content presented in this course is required study for those who sell annuities in this state

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

Note: The option to meet the annuity training requirement by taking this 1-hour course is available for a limited time.  After that, producers must take a 4-hour course approved for the new annuity best interest standards.   

Licensed producers and advisors who previously took and passed an approved 4-hour annuity suitability course prior to this state’s adoption of the 2020 NAIC revised regulation.