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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 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:

  • 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 final exam that must be passed with 70% or better. The exam may be taken as many times as needed to pass. 

  • Course ID(s): 6000104808
  • Approved By: Commissioner of Securities and Insurance

Instructor Bio

Property & Casualty Insurance Instructor

Aaron Phelps is At Your Pace Online’s Subject Matter Expert for Property and Casualty Insurance. Prior to entering the insurance field, Aaron worked for 7 years in customer service and management before entering into the insurance field. He is a licensed insurance agent in Oregon with a Bachelor of Science degree from Oregon State University in Communication and has been working locally since 2015. Aaron specializes in individual health insurance plan options and life insurance, provides employee benefits support for his company’s group clients, and expertly handles insurance needs for personal line clients. His favorite part of his job is helping people understand how insurance policies work and alleviating their anxiety and fear over the process. In addition to his accomplished career in the insurance field, Aaron has been married for 17 years and shares 4 children with his wife. He spends his free time backpacking, traveling, and camping or simply relaxing and enjoying good food and drinks with his friends.