Missouri Follows Suit in Best Interest Training

October 24, 2024 Annuities, Missouri

Missouri adds the Best Interest standard adopted by the NAIC to their new training requirements for Suitability in Annuity Transactions. These rules have been adopted by a majority of states already, including all states surrounding Missouri.

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.

Required Training

The topics that must be part of the training course must include information on:

  • The types of annuities and various classifications of annuities;
  • Identification of the parties to an annuity;
  • How product specific annuity contract features affect consumers;
  • The application of income taxation of qualified and nonqualified annuities;
  • The primary uses of annuities; and
  • Appropriate standards of conduct, sales practices, replacement and disclosure requirements.

Providers licensed after August 30, 2024 will have until February 28, 2025 to complete a one-time four-hour training course. Producers licensed prior to August 30, 2024 may take a one-hour course approved after August 30, 2024 or the approved NAIC 4-hour course.

You can read more about the update from the Department of Commerce and Insurance or register for your 4-hour annuities training through InsuranceStudy.com.

Frequently Asked Questions

Who needs to complete the new training?

All producers who engage in the sale of annuities in the state of Missouri, 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 Missouri?

Licensed producers who were already selling annuity products prior to August 30, 2024 and who already took an Annuity Suitability program (those who are currently certified to sell annuities in Missouri) need to complete either:

1-Hour Annuity Best Interest course by February 28, 2025

OR

4-Hour Annuity Best Interest course after February 28, 2025 and before the sale, solicitation or negotiation of an annuity product in Missouri.

When is the training due for producers NOT already certified to sell annuity products in Missouri?

A producer who was NOT engaged in the sale of annuity products and holds a producer license issued prior to August 30, 2024 must complete the required training by February 28, 2025.

When is the training due for NEW producers who want to sell annuity products in Missouri?

Any producer licensed after August 30, 2024 who wishes to engage in the sale of annuities in Missouri must complete the NAIC approved 4 hours of training before the sale, solicitation or negotiation of an annuity product in Missouri.

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.

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.com when your course is complete and can be downloaded at any time from your course dashboard. Additionally, InsuranceStudy.com is an approved ClearCert provider and all course completions will be reported to them 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.

Are courses offered through InsuranceStudy.com approved by the state?

Yes, all courses available at insurancestudy.com have been approved by the state and comply with all rules and regulations for your license. Go here to register for your NAIC approved annuities course in Missouri.

InsuranceStudy.com has been providing continuing education for Insurance Providers and Certified Financial Planners for more than 20 years. We are dedicated to bringing you convenient, affordable and compliant courses. Have more questions? Email us at support@insurancestudy.com.