Annuities (Meets Suitability & Best Interest Guidelines)

In this course you will be introduced to terms and concepts used in connection with annuity contracts. Each new term is defined in the text and included in the Glossary. The concepts are explained and, where appropriate, are demonstrated through the use of examples.

At the conclusion of each module, a quiz is presented to test comprehension of the material presented in the module. A response is given to each answer you select to the questions in the quiz affirming the correct choice or explaining why the choice you selected was incorrect.

This information is important for agents selling annuity contracts to customers and for advisers assessing the appropriateness of an annuity contract for a client. An understanding of the operation, advantages and disadvantages of annuities and the methods used to determine their cash value will assist the agent and adviser to better serve consumers and help ensure that annuity contracts are recommended and purchased only when they are suitable to meet client needs.

Learning Objectives: Upon completion of this basic course, the student should be able to:

1. Describe a typical annuity buyer and the principal reasons individuals buy annuity contracts
2. List the characteristics of annuities and the benefits of tax deferral
3. Explain how variable annuities work
4. Identify the cash value management tools available to a variable annuity contract owner
5. List the factors to be considered in determining variable annuity suitability
6. Calculate interest to be credited under various fixed annuity contracts
7. Explain the operation of indexed annuities
8. Describe how annuities are taxed
9. Recognize the requirements imposed on the sale of variable annuities under Regulation Best Interest

PLEASE NOTE: In most cases, completion of this course in a Non-Resident state will not be eligible for insurance continuing education. You will be issued a certificate showing completion of the course to meet your Annuity Training requirement for the ability to sell, solicit and negotiate annuity products for your carriers.