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More States Added: NAIC Annuity Training




Christy Gass
Licensing & Contracting
Specialist

Do you do sell annuities in one of the thirty-eight states that has adopted the NAIC Suitability in Annuity Transactions Model Regulation? As more states adopt this regulation, more agents must complete annuity training. Are you compliant? The Frequently Asked Questions below will help you understand the requirements.

Frequently Asked Questions: NAIC Suitability in Annuity Transactions Model Regulation

What are the training requirements of the regulation?
There are 2 parts of the required training that must be completed PRIOR to solicitation.

  1. STATE TRAINING: A one-time, four-hour state approved continuing education course: * AND
  2. CARRIER TRAINING: A one-time product-specific training, as required by the insurance carriers, per carrier. Product-specific training will also need to be completed for new products and major changes to an existing product.

*Please note that this requirement varies for California and Texas. 

What States have adopted this Regulation?
Alabama
Alaska
California
Colorado
Connecticut
District of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Missouri (as of 3/30/17)
Nebraska
New Hampshire
New Jersey
North Dakota
Ohio
Oregon
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Virginia (coming 1/1/2018)
Washington
West Virginia
Wisconsin
Wyoming


When must I complete the training if I plan to sell an annuity?
You must complete the state and carrier product training prior to solicitation.

Exception: new states who adopt the Regulation will usually give current licensed agents longer to complete the state portion of the training. However, the carrier product training is required the day the state adopts the Regulation.

For example, Missouri will adopt the Regulation on 3/30/2017. Agents who are licensed in Missouri prior to that date will have until 9/30/2017 to complete the state portion of the training. However, the carrier product training will be required prior to soliciting new annuity business on or after 3/30/2017. Any agents licensed in Missouri on or after 3/30/2017 will be required to complete the state and carrier product training immediately before soliciting the new annuity business.

Do the training requirements apply to all annuities?

YES. The training requirements apply to all Fixed & Fixed-Indexed and Variable Annuity products

Does this affect Life products or In-force Annuity business?

NO. This Regulation does not affect Life, LTC, or DI products.
NO. Training is not required to service any in-force Fixed or Variable policies

Do I need to complete training if I do not plan to write any annuity business?

NO. You do not need to complete the state or carrier product training. If you want to write annuity business at a later date, both state & carrier training must be completed prior to solicitation.

Does carrier product training need to be completed for each state where I place business?

NO. Carrier product training satisfies the requirement in all states. However, some carriers require training per product. You need to complete the carrier specific training for the products you wish prior to solicitation.

If I hold an insurance license in more than one state, do I need to complete multiple state approved CE courses?

MAYBE. California, Florida, New York, and Utah are not reciprocal. These states will not accept CE from other states and other states cannot accept CE from these states.

Reciprocal States:

For each state where you intend to solicit annuity sales, you must complete a CE course approved by that state. If a course is approved by multiple states (or is reciprocal), you only need to complete the course one time.

Example: If you complete a course approved by Kansas and want to solicit annuity business in the reciprocal state of Rhode Island, you have fulfilled the CE requirement for both states.

Non-Reciprocal States:
If you have completed a CE course that is not reciprocal with another state, you will need to complete the CE course for both states prior to soliciting.

Example: if you complete a course approved by California and want to solicit annuity business in the non-reciprocal state of North Dakota, you will need to complete the North Dakota CE course prior to soliciting new business in that state.

What happens if I do not complete the trainings prior to selling new annuity business?

Your application will be rejected and returned to you if you do not complete both state training and carrier training. To resubmit the business, you will need to complete both required trainings and meet with your client again to complete new paperwork.

What happens if I complete only one of the two required trainings prior to selling new annuity business?

Your application will be rejected and returned to you if you do not complete either state training or carrier training. To resubmit the business, you will need to complete the missing required training and meet with your client again to complete new paperwork.

I’ve read all the FAQs above, but I’m still not sure if I am complaint. What should I do?

Contact First Heartland Licensing and we can help you figure out what you would need and if you completed those requirements.

CHRISTY GASS | LICENSING & CONTRACTING SPECIALIST   636.695.2842   CGASS@FIRSTHEARTLAND.COM
 

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