How am I affected by the new annuity suitability and best interest requirements?

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

  • Arizona
  • Arkansas*
  • Delaware*
  • Idaho*
  • Iowa*
  • Michigan
  • Nebraska*
  • North Dakota*
  • Rhode Island

Legislation/Regulations Pending Are

  • Alabama
  • Connecticut
  • Illinois
  • Kentucky
  • Maine
  • Montana
  • Nevada
  • Texas
  • Virginia

Insurance companies are held responsible for producers completing the courses prior to issuing an annuity contract.