A committee with the National Association of Insurance Commissioners (NAIC) adopted a final version of the Suitability in Annuities Transaction Model on December 21, 2009. The most pivotal points of this Model include the transition of product and transaction review to the insurance companies and also the implementation of tighter training requirements for the agents selling annuities products. The change is intended to emphasize suitability concerns and better address changes to regulations and the economic market that have occurred in the last four years. The current model was originally passed back in 2006. A NAIC Suitability in Annuities training requirement is expected to be adopted by many states in the coming year.<\/p>\n
Some states have already moved forward with adopting tighter training regulations, namely Iowa and Michigan. These training regulations have the potential to mimic the major overhaul the insurance industry faced when new training guidelines were implemented for the sale of Long Term Care Products back in 2007.<\/p>\n
It is expected that the Model will be voted on by the NAIC\u2019s Executive and Plenary committee this March at their Spring National Meeting in Denver, Colorado. Agents who sell annuities products should be on the lookout for new training regulations which they may be required to complete before they can continue to sell annuity product.<\/p>\n","protected":false},"excerpt":{"rendered":"