Want commissions? Be sure you have met NAIC suitability requirements

By David Shields

WealthMark Advisors, Inc


If you’re unfamiliar with NAIC Model Regulation, it’s time to get educated. Otherwise known as the 2010 Suitability in Annuity Transactions Model Regulation, it stipulates continuing education and product training that must take place to ensure client suitability.

The purpose of the regulation was to establish framework to hold insurers accountable, ensure agents are in the know and to align standards with FINRA, when possible. What does this mean to you?

First, review the list of NAIC states below. If you are selling in one of these states, there is additional training required. Initially, you will need to pass a one-time annuity training course (typically, four hours) specified by the state from an approved vendor. The course covers types of annuities, identification of parties, how contract provisions affect clients, the application, the purpose of annuities, and best practices. Next, you must complete product-specific training with any carrier you intend to do business with. This training must occur on or before the date of an application.

Finally, a one-time annuity training course must be taken thereafter in order to remain compliant with the NAIC Model Regulation. The ongoing eight hours are considered part of, and not an addition to, your standard ongoing continuing education classes.

States that have currently adopted this regulation, or a variation thereof, are:
    • Arkansas
    • California
    • Colorado
    • Connecticut
    • District of Columbia
    • Hawaii
    • Illinois
    • Indiana
    • Iowa
    • Kentucky
    • Maryland
    • Nebraska
    • North Dakota
    • Ohio
    • Oklahoma
    • Oregon
    • Rhode Island
    • South Carolina
    • South Dakota
    • Texas
    • Washington
    • West Virginia
    • Wisconsin