Insurance CE >> Iowa >> Life / Health

The NAIC's Best Interest Standard for Annuity Transactions

Course Details


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February 2020

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Exam Requirements

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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
Exam Requirements: Self-Study exams are closed-book and must be monitored by a disinterested 3rd party who shall NOT serve for examinations of family members, relatives, or dependents; employers or supervisors; employees or subordinates; partners, joint ventures, or co-owners; or for anyone in whom the monitor or instructor has an economic or other interest in assuring the successful outcome of the examination.

IMPORTANT NOTICE FROM THE IOWA DOI: The Iowa DOI recommends that producers purchase and complete CE at least one month prior to the agent's expiration date. Click to view entire Notice

Please Note: Due to the COVID-19 public health threat, the Iowa Insurance Division has waived proctoring and classroom requirements for continuing education through the end of March 2021.