Annuity Suitability Training

Course Description

NAIC Suitability in Annuity Transactions Model Regulations

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.