TX, VA and MT adopt new Best Interest Suitability Regulation
Texas, Virginia and Montana have adopted the National Association of Insurance Commissioners (NAIC) revisions to the Suitability in Annuity Transactions Model Regulation (#275) as follows:
- Delaware: Effective September 1, 2021
- Ohio: Compliance required October 1, 2021*
The revisions impose new requirements on both producers and insurers. Most notably, producers are required to act in the best interest of the consumer when recommending an annuity purchase, by meeting Best Interest Obligations defined by the regulation.
Here’s what you’ll need to do to meet your Best Interest Obligations for these states. We will continue to update you as additional states adopt the new regulation and approve training courses.
Required training
As part of the Best Interest Standards, Delaware and Ohio have implemented the following regulatory training requirements:
| Texas | If you were licensed in Texas and completed model law training before January 1, 2022, you must complete the 1-hour best interest supplemental training course or the new 4-hour training course on or prior to January 1, 2022. For those licensed on or after January 1, 2022, the new 4-hour training course will be required before selling annuities. |
| Virginia | If you were licensed in Virginia and completed model law training before September 1, 2021, you must complete the 1-hour best interest supplemental training course or the new 4-hour training course on or prior to March 1, 2022. For those licensed on or after September 1, 2021, the new 4-hour training course will be required before selling annuities. |
| Montana | If you were licensed in Montana and completed model law training before October 1, 2021, you must complete the 1-hour best interest supplemental training course or the new 4-hour training course on or prior to April 1, 2021. For those licensed on or after October 1, 2021, the new 4-hour training course will be required before selling annuities. |
Training is available through the RegEd platform. Once completed, RegEd will notify Athene that you have satisfied your requirement. While Athene will accept training through other platforms, you will need to provide Athene with proof of completion.
Forms and materials
As previously announced, the following Athene suitability forms have been updated to comply with best interest obligations:
- Rate Comparison Worksheet (22216, Ver. 12/20):
- Customer Identification and Suitability Confirmation Worksheet (17341, Ver. 12/20)
Please note: Your organization may not use Athene suitability forms. Be sure to check with your back office for guidelines. If your organization uses Athene suitability forms, the revised forms listed above will be required in all states (except FL and NY), whether the new suitability regulation has been adopted or not. |
New – Appendix A
With the adoption of the Best Interest Standards, Delaware and Ohio require the use of an Insurance Agent [Producer] Disclosure for Annuities form, often referred to as Appendix A. For your convenience, we’ve created a version of Appendix A (22712, Ver. 12/20) for you to use.
Important Processing dates for Athene suitability users
For those that use Athene suitability forms, we will require a version of Appendix A (Athene’s form or another version that matches the regulation’s prescribed form) to accompany all applications received by Athene by market close (3 p.m. CT) on the following dates:
- Delaware: August 31, 2021
- Ohio: September 30, 2021
Please note: Appendix A must be signed by both the producer and customer(s).
All new or revised materials and forms are available now on the Forms and Materials page for all states (except FL and NY) and should be used immediately.
Applications with outdated or missing forms that do not fall within the guidelines above will be considered “not in good order.” Be sure to use up-to-date materials when offering Athene annuities.
Still have questions?
For additional information, and to help give you a better understanding of Athene’s considerations during the suitability review process, please familiarize yourself with our revised producer guidelines and helpful tips:
- A step-by-step guide to completing Athene’s Suitability Worksheet (20543)
- A step-by step guide to completing Athene’s Product Comparison Worksheet (22420)
- Suitability Guidelines for Producers (52264)
- Doing Business with Athene Producer Guide (19608)
- Athene’s Position and Guidelines on Replacements (19532)
Thank you for your business.