Arizona 4 Hour Annuity Training Course with Best Interests

In 2020, Arizona adopted the National Association of Insurance Commissioners’ (NAIC) amended regulations and requires all producers authorized to sell annuities to take a 4 hour training course including the best interest updates. This course meets these requirements and is state-approved.

In this course, students will be led through the NAIC model regulation and Arizona statute updates, with emphasis on best interest. Since annuities are a largely misunderstood (and previously mis-marketed) product, producers have an obligation to understand their clients’ situations, plans, and needs in order to help guide them to make the right purchase decisions.

Students will learn about the different types of annuities and settlement options, and how each party to an annuity is impacted by the policy contract. We will look at suitability in-depth, and see the advantages and disadvantages of various annuity types and contract provisions.

Other topics covered in this course include:

• Variable vs. fixed annuities
• When a beneficiary may be included in a contract
• Death benefits
• Interest rate options
• Early surrender charges
• Contract riders and when they may be appropriate
• Taxation of annuities (including how to apply the exclusion ratio)
• The difference between qualified and non-qualified annuities
• Less common uses for annuities, including charitable donation and avoiding probate
• How to consider a customer’s profile to make a suitable product recommendation
• Disclosure requirements for both producers and customers
• Replacing annuities
• Recordkeeping requirements
• Unfair marketing practices
• And so much more!

At the end of the course, there will be a 25 question final exam that must be passed with 70% or better. The exam may be taken as many times as needed to pass.

Course Format: Text

Credit Type: Annuity Best Interest

Course ID(s): 106800

Approved By: Arizona Department of Financial Institutions (AZDFI)