California Annuity Suitability Best Interest Standard

This 4-hour course meets the state requirements for those selling annuities and have completed the initial 8-hour annuities training course that is required for life insurance licensees selling annuities. The material is based on the content outline provided by the state of California, and provides a current and comprehensive look at annuity suitability, best interest standards, and best practices in the industry. This course will introduce you to the requirements as laid out by the state and the National Association of Insurance Commissioners Model Annuity Act.  

Specifically, the course explores the following: 

• The annuity suitability and best interest standards, including applicable California and federal law; 
• How suitability and best interest standards apply to sales or recommendations of annuities, licensing requirements, the importance of determining client suitability for annuity sales using client profile information, and policy cancellations and refunds; 
• Appropriate advertising practices pertaining to general advertising and advertising specific to seniors; 
• Rights and obligations of the insurance producer and the insurance company, including the NAIC Buyer’s Guide, required disclosures, product illustrations, replacement, and the importance of reviewing and studying sample contracts; 
• Prohibited sales practices, including selling annuities for Medi-Cal eligibility, and in-home solicitations and their associated requirements; 
• Sharing commissions with an attorney and how it is generally prohibited; 
• Unnecessary replacement, bait and switch tactics and laws, causes for license suspensions, and penalties for violations of law; 
• Medi-Cal is thoroughly addressed, including home equity limits, establishment of the hardship exceptions with associated material on fair hearings, look back periods, the requirements related to annuities, designated beneficiaries, and California’s role as a remainder beneficiary of annuities in specific instances; 
• Policy cancellations and refunds, including free look periods for persons both over and under the age of 65; 
• A deep dive into ethics, the licensee, and the insurance company, including topics such as “What It Means To Be A Licensee,” “Product Knowledge,” “Need and Benefit Selling,” “Client Confidentiality,” and more; 
• A recap of penalties and their definitions made part of “Attachment III” used as a refresher and reminder of the disciplinary actions that can be taken by the state. 

There is a 12-question final exam that must be passed in order to receive certification for the course.