National Association of Insurance Commissioners (NAIC) issued a new model law #275 Annuity Suitability & Best Interest in 2020 to address problems in the old law. For new producers wanting to sell annuities, there is a 4-hour required course to complete and training on the insurance company’s annuities prior to selling annuities. For seasoned producers, who completed the prior annuity suitability course, they can complete a 1-hour update course within 6 months of the effective date. The window for this training ends 6 months after the effective date and seasoned producers will be required to complete the 4-hour course on Annuity Suitability and Best Interest. The status by state of this model law is below:
New Law/Regulations in Place
* Courses are available with ECU
- North Dakota*
- Rhode Island
Legislation/Regulations Pending Are
Insurance companies are held responsible for producers completing the courses prior to issuing an annuity contract.