Annuity Suitability Training

Under the National Association of Insurance Commissioners (NAIC) Model Laws on Annuity Suitability, there are two training requirements.  First, insurers are required to train their producers on their products.  It mandates insurers properly supervise their producers and check on the suitability of the product to meet the needs of the client.  Insurers are also required to see if their producers have completed the mandated annuity suitability training before accepting any annuity application.

Second, each life insurance producers that wants to sell annuities must complete a four hour course on annuity suitability that has been approved in their home state.  If you complete your home state requirements for annuity suitability, you are home free in 41 states.  California requires eight hours plus some ongoing training.  Currently Arizona, Arkansas, Montana, New Mexico, North Carolina, Pennsylvania and Vermont have no current state training requirements and their resident producers will need to complete another states’ annuity suitability course to sell in other states with the requirement.