Florida Annuity Best Interest 4 HR CE

This 4 hour training course is designed to meet the National Association of Insurance Commissioners’ (NAIC) education requirements for producers authorized to sell annuities. 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 course. This course meets the NAIC’s education requirement. Specifically, this course includes the updates to the NAIC’s amended Model Regulations for annuity transactions. This course covers annuity suitability and best interest laws, as well as in-depth information on types of annuities, understanding each party of an annuity, contract structures, recordkeeping, contract provisions, and more. This course will teach students how to help a customer choose an annuity product that is right for them, and how to do so lawfully.

In this course, students will be led through the NAIC Model Regulation updates, with emphasis on the best interest obligations for producers. 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. Students will learn appropriate sales practices for determining the suitability of an annuity product, and learn about the nuances of annuity replacement.

Other topics covered in this course include:

• Best Interest Obligations, the NAIC Model regulation and associated requirements
• Parties to the annuity contracts
• The primary uses of annuities
• Annuity contract provisions
• Advantages and disadvantages of annuities and the various types of annuities
• Appropriate sales practices, replacement of annuities, and other suitability concerns
• Insurer and agent duties and annuity disclosure requirements
• Income taxation for qualified and nonqualified annuities
• NAIC Suitability and Best Interest Obligations
• Florida Statute section 627.4554 and its relation to the NAIC Model Act for Best Interest and Suitability requirements; and
• A host of related and interesting information.

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): 129094

Approved By: Florida Department of Financial Services - Division of Insurance