New Annuity Suitability Requirements Effective 1/1/11

Click here for State-Specific Annuity Suitability Requirements (Updated 1/12/2012)

Click here for Carrier-Specific Annuity Suitability Requirements (Updated 2/13/2012)

In 2010, the National Association of Insurance Commissioners (NAIC) adopted the 2010 Suitability in Annuity Transactions Model Regulation. Specifically, this Model Regulation was adopted to:

·         Establish a regulatory framework that holds insurers responsible for ensuring that annuity transactions are suitable, whether or not the insurer contracts with a third party to supervise or monitor the recommendations made in the marketing and sale of annuities.

·         Require that producers be trained on the provisions of annuities in general, and the specific products they are selling.

·         Where feasible and rational, to make these suitability standards consistent with the suitability standards imposed by the Financial Industry Regulatory Authority (FINRA).

Under the Model Regulation, there are two types of required annuity training:

·         Carrier-Specific – requiring the producer to have adequate product-specific training, including compliance with the insurer’s standards for product training, prior to soliciting an annuity product, and,

·         Industry-Specific – requiring the producer to take a one-time, minimum four (4) credit hour general annuity training course offered by an insurance-department approved education provider.

Many states will tweak the "Model Regulation" provided by the NAIC with their own state-specific regulations and Carriers will develop product-specific training based on their own interpretation of the regulations.  The links on this page will assist you in finding the state and carrier specific suitability requirements apply to you.