NAIC Suitability Requirements
The NAIC has adopted a significantly revised “Suitability in Annuity Transactions Model.” Once a state adopts this new Model, producers in that state will be required to fulfill two different training requirements prior to solicitation of an annuity. Please note: some carriers now require their product specific training to be taken in ALL states regardless of whether or not that states has adopted the new model.
A one-time state level four (4) hour continuing education course on annuities approved by the state department of insurance for the state he/she is licensed or doing business in is required.
NOTE: California initially requires eight (8) hours, then four (4) hours every two years thereafter. Iowa requires a four (4) hour course specific to indexed annuity products. Texas requires eight (8) hours every two years.
Product specific training provided by the insurance carrier prior to soliciting the sale of a particular annuity product. A producer must complete the training BEFORE the date of the application for a product. If the training is completed on or after the application date, the carrier will require a new application.
