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 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): 6000091647
Approved By: Department of Business Regulation - Insurance Division
- Annuity Best Interest
- 4 Hour Annuity Suitability and Best Interest Obligations [15 Activities]
- 01. 4 Hour Annuity Best Interest Training (Video)
- 02. NAIC Suitability in Annuity Transactions Model Regulation with Best Interest
- 03. Types of Annuities (Video)
- 04. Types and Classifications of Annuities
- 05. Parties to an Annuity (Video)
- 06. Parties to an Annuity
- 07. Annuity Contract Provisions (Video)
- 08. Annuity Contract Provisions
- 09. Income Taxation for Qualified and Nonqualified Annuities
- 10. The Primary Uses of Annuities (Video)
- 11. The Primary Uses of Annuities
- 12. Appropriate Sales Practices
- 13. Annuity Disclosure Requirements
- 14. Annuity Replacement
- 15. Course Conclusion
- 4 Hour Annuity Suitability and Best Interest Obligations [15 Activities]
- Exam
- Final Exam (25 questions)
- Certificate of Achievement
- Mandatory Questionnaire
- Certificate of Completion
- Guaranteed Next Business Day Reporting
