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 state 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.
