4-hour Annuity Best Interest Training

Instructor

UIE

Phone

(253) 846-1155

Email

mail@uiece.com

This course follows the Suitability in Annuity Transactions Model Regulations outline developed by the National Association of Insurance Commissions (NAIC). The model regulations require insurers to become responsible for ensuring that annuity sales are suitable based on specified criteria. It requires insurance producers to be trained on annuities in general and certainly on the specific products they sell. Where feasible and logical, suitability standards for annuities are consistent with the suitability standards imposed by the Financial Industry Regulatory Authority, known as FINRA.

This course provides annuity product training regarding traditional fixed-rate annuities; equity-indexed fixed annuities, and variable annuities. Variable annuities are required to meet FINRA suitability rules; sales in compliance with FINRA rules would comply with the NAIC suitability regulations.

This course provides information that is reasonably appropriate to determine the suitability of a producer’s annuity recommendation, such as age, tax position, income, individual financial situation, time horizon, and objectives. Furthermore, it covers the duties of insurers and insurance producers. Prior to recommending an annuity product, of any kind, producers and insurers are required to make reasonable efforts to obtain the consumer’s suitability information. This course covers all the steps in doing so. Since annuities are often intended to provide income during the buyer’s retirement years, it is important that agents understand their ethical and professional duties when recommending these products.

Course Schedule

Chapter	Subject	Description
Chapter 1	Under the NAIC Model training it states: Section 7. Producer Training	A. A producer shall not solicit the sale of an annuity product unless the producer has adequate knowledge of the product to recommend the annuity and the producer is in compliance with the insurer’s standards for product training. A producer may rely on insurer-provided product-specific training standards and materials to comply with this subsection. B. (1) (a) A producer who engages in the sale of annuity products shall complete a one-time four (4) credit training course approved by the department of insurance and provided by the department of insurance-approved education providers. (b) Producers who hold a life insurance line of authority on the effective date of this regulation and who desire to sell annuities shall complete the requirements of this subsection within six (6) months after the effective date of this regulation. Individuals who obtain a life insurance line of authority on or after the effective date of this regulation may not engage in the sale of annuities until the annuity training course required under this subsection has been completed. Some states have adopted the code below since so many agents have completed the previous one-time requirement. Here is the example from Iowa’s code as they were the first to adopt it.

Chapter

Subject

Description

Chapter 1

Under the NAIC Model training it states:

Section 7. Producer Training

A. A producer shall not solicit the sale of an annuity product unless the producer has adequate knowledge of the product to recommend the annuity and the producer is in compliance with the insurer’s standards for product training. A producer may rely on insurer-provided product-specific training standards and materials to comply with this subsection.

B. (1) (a) A producer who engages in the sale of annuity products shall complete a one-time four (4) credit training course approved by the department of insurance and provided by the department of insurance-approved education providers.

(b) Producers who hold a life insurance line of authority on the effective date of this regulation and who desire to sell annuities shall complete the requirements of this subsection within six (6) months after the effective date of this regulation. Individuals who obtain a life insurance line of authority on or after the effective date of this regulation may not engage in the sale of annuities until the annuity training course required under this subsection has been completed.

Some states have adopted the code below since so many agents have completed the previous one-time requirement. Here is the example from Iowa’s code as they were the first to adopt it.

Additional Information

Where applicable and specifically noted, this course is approved for the best interest requirements.

ClearCert Approved.