New Annuity Suitability Forms Effective 01/01/21
Beginning January 1, 2021, we will be updating our annuity suitability forms to reflect the newly adopted NAIC Suitability in Annuity Transactions Model Regulation. Please note: We have updated the suitability form for ALL states – even in states that have not yet adopted the new rules included in the Model Regulation.
Transition Rules
As of the date this article was published, we are aware of the following states that have already set a date for when the new rules will be effective. In these states, we will be enforcing transition rules for when the new form must be used. In all other states, we encourage you to start using the new forms as soon as possible – even if the new rules are not effective in your state yet.
- In Arizona and Iowa, the new rules are effective January 1, 2021 and the old suitability form will no longer be accepted for applications signed on or after February 1, 2021.
- In Rhode Island, the new rules are effective April 1, 2021 and the old suitability form will no longer be accepted for applications signed on or after May 1, 2021.
Form & Material Updates
- The Annuity Suitability form has been updated and renamed to the Annuity Consumer Profile Information form (L7748_0121). This version of the form will be used in all states except Florida, which will continue to use their state specific version (L8281_1014).
- We will now require a new Insurance Agent (Producer) Disclosure for Annuities form (467753). This version of the form will be used in all states except Idaho, which has a state specific version (ID-AN-2020 (6/19)).
- The NAIC Annuity training presentation and the Annuity Suitability Instruction Guide (26008) have been updated to reflect the information in the new NAIC Suitability in Annuity Transactions Model Regulation. Refer to the Annuity Training article for information regarding additional training that is required due to the updated in the NAIC Suitability in Annuity Transactions Model Regulation.
New Best Interest Training for Annuity Sales in Iowa and Arizona Effective 01/01/21
Effective January 1, 2021, Iowa and Arizona have adopted the new Suitability in Annuity Transactions Model Regulation rules; and, therefore must complete a training course.
The National Association of Insurance Commissioners (NAIC) has approved revisions to its Suitability in Annuity Transactions Model Regulation. The revised regulation requires that all annuity recommendations by producers and insurers meet a “best interest” standard.
The new best interest standard requires insurance agents to exercise a greater degree of care in selecting annuities for their clients, to avoid conflicts of interest, to make certain disclosures to clients, and maintain adequate documentation to show that they have acted in the best interest of the client.
Under the new model regulation training has been expanded to include the new standard of conduct. Producers in Iowa and Arizona are now required to complete a new course as follows:
- FOR PRODUCERS APPOINTED PRIOR TO JANUARY 1, 2021:
To continue selling annuities, producers who have completed an annuity training course prior to January 1, 2021, must complete an additional one-time 1 hour course that contains training on the new best interest standard of conduct within 6 months (before June 30, 2021).
NOTE: Producers who miss the 6 month window (meaning they complete the training on or after July 1, 2021) must complete a one-time 4 hour course. - FOR PRODUCERS APPOINTED ON OR AFTER JANUARY 1, 2021:
Producers appointed on or after January 1, 2021, must complete a one-time 4 hour course that contains training on the new best interest standard of conduct and Mutual of Omaha Annuity Product Training before soliciting annuities.
ONLINE TRAINING
Mutual of Omaha has contracted with RegEd to offer state-approved CE annuity courses to meet this requirement.
- Login to an existing account or create a new account and login using the new user name and password.
- When registering for a course, check the CE option and RegEd will send your completed CE information to the state.