Utah Annuity Suitability and Best Interest 1 HR CE

In this one-hour course, students will learn about the most recent updates to the National Association of Insurance Commissioners’ (NAIC) Model Regulation for Suitability in Annuity Transactions, with emphasis on best interest obligations to the consumer. Specifically, this course covers appropriate sales practices, annuity disclosure requirements, and annuity replacements.

In 2020, the NAIC updated its Model Regulation for annuity transactions, which mandates insurance producers offering annuities to their customers to take a suitability and best interest training. This course meets the NAIC’s education requirement.

In this course, students will be guided through Best Interest Obligations. First, we will cover appropriate sales practices for determining an annuity product’s suitability for a customer. This includes taking into account customer information such as their age, financial status, intentions, and overall investment strategy.

Next, we will go over the disclosure requirements for annuity transactions, with emphasis on two key elements: The NAIC’s Buyer’s Guide for different types of annuities and the disclosure document. Disclosure is vital for ensuring that customers have been given all the information they need to make an informed decision when purchasing an annuity, making this lesson very important for producers.

We will finish the course with a lesson on annuity replacements. We will discover some of the reasons customers might have to initiate an annuity exchange, look at the Model Regulation’s Appendix A for replacement form requirements, and learn about an insurer’s responsibilities regarding annuity replacement.

This course includes a 10-question final exam. Students must score 70% or higher to pass, and may take the exam as many times as needed to pass.