Oklahoma Annuity Best Interest Training
The New Best Interest Requirement
Effective September 1, 2023, Oklahoma has adopted the Annuity Suitability and Best Interest Standard Model Act (#275). The training requirements are now located in Oklahoma Administrative Code (OAC) 365:25-17-7.1. Licensed insurance producers who hold a life insurance line of authority in Oklahoma and want to sell annuities on or after September 1, 2023, must take an Annuity Best Interest (Annuity BI) certification course offered by an approved continuing education provider. The updated training courses will include adopted NAIC’s 2020 Model Law #275 best-interest standards, which among other changes, outline the requirement for producers to act in the best interest of the consumer at the time the annuity recommendation is made.
The topics that must be covered by the training course are set out in the regulation and shall include information on:
- The types of annuities and various classifications of annuities
- Identification of the parties to an annuity
- How product specific annuity contract provisions affect consumers
- The application of income taxation of qualified and non-qualified annuities
- The primary uses of annuities
- Appropriate standards of conduct, sales practices, replacement and disclosure requirements
New Oklahoma Training Requirement
Producers who hold a life insurance line of authority, who were not engaged in the sale of annuities prior to September 1, 2023, and who desire to start selling annuities must complete an approved four (4) hour annuity training course within six (6) months after September 1, 2023 (no later than February 29, 2024). A Producer who fails to complete the training by this deadline must immediately cease selling annuities until the training is completed. Producers who obtain a life insurance line of authority on or after September 1, 2023, shall not engage in any annuity sales until they successfully complete an approved four (4) hour annuity training course.
Frequently Asked Questions
Who needs to complete the new training?
All producers who engage in the sale of annuities in the state of Oklahoma, including those registered with FINRA, must complete the training required by the revised model.
When is the training due for producers already certified to sell annuity products in Oklahoma?
Licensed producers who were already selling annuity products prior to September 1, 2023 and who already took an Annuity Suitability program (those who are currently certified to sell annuities in Oklahoma) need to complete either:
1-Hour Annuity Best Interest course by April 30, 2024
4-Hour Annuity Best Interest course after April 30, 2024 and before the sale, solicitation or negotiation of an annuity product in Oklahoma.
When is the training due for producers NOT already certified to sell annuity products in Oklahoma?
A producer who was NOT engaged in the sale of annuity products and holds a producer license issued prior to September 1, 2023 must complete the required training by February 29, 2024.
When is the training due for NEW producers who want to sell annuity products in Oklahoma?
Any producer licensed after September 1, 2023 who wishes to engage in the sale of annuities in Oklahoma must complete the required 4 hours of training before the sale, solicitation or negotiation of an annuity product in Oklahoma.
What if a producer does not complete the required training?
Any producer failing to complete the training by their required deadline must immediately cease selling annuities until the training is completed.
Will a producer get CE credit for taking the new annuity best interest training?
Yes, courses must be taken through an approved continuing education provider. The course approval should indicate a course category of “Annuity”. These courses are approved for insurance continuing education towards your license renewal and it is the education providers responsibility to post these credits to your transcript. InsuranceStudy intends to have both courses available in our catalog at https://www.insurancestudy.com/courses/oklahoma-insurance-continuing-education. Courses will be available upon approval by the Oklahoma Division of Insurance.
How does a producer show that they have met the new annuity best interest training requirement?
The producer may be asked by the insurer to provide a certificate of completion of the training course in order to satisfy the insurer’s responsibility under the Regulation. Certificates of Completion are provided by InsuranceStudy at the completion of your course and can be downloaded at any time from your course dashboard. Additionally, InsuranceStudy is an approved ClearCert provider and all course completions will be reported to ClearCert so that carriers may verify a producer’s certification status at any time. It is the insurer’s responsibility to verify that the producer has completed the training.