The NAIC Suitability in Annuity Transaction Model Regulation was developed to ensure suitable annuity recommendations are made to consumers. Furthermore, it holds insurers responsible for making sure the agents representing their company are knowledgeable about their products.
To comply with the states that have or will be adopting this regulation, carriers are implementing product-specific training requirements. In addition to product-specific training, producers must also complete a one-time 4-hour annuity suitability course. Please note, a few states do require ongoing training after the initial 4-hour course. Please check with your state’s department of insurance to see if your state currently requires this 4-hour training and to make sure you are up-to-date with your CE credits.
Both the 4-hour annuity suitability and any product-specific training requirements need to be satisfied PRIOR to soliciting business. Because different states are adopting this model at different times, it is imperative that you verify if training is needed or not before writing a piece of business. Carriers will reject any business that is received prior to the agent completing training.