On March 28, 2010, the National Association
of Insurance Commissioners (NAIC), the voluntary organization of insurance
regulators from the 50 states, the District of Columbia and the five U.S.
Territories, adopted and published its 2010 Suitability in Annuity Transactions
Model Regulation (Model Regulation) which adopts new standards and
procedures for suitable annuity recommendations and to require insurers to
establish a system to supervise recommendations so that the insurance needs and
financial objectives of consumers are appropriately addressed.
Specifically, Section 7B of the Model
Regulation, requires a one-time, minimum four credit hour general annuity
training course offered by an insurance-department approved education provider
and approved by an insurance department in accordance with applicable insurance
education training laws or regulations.
Additionally, under Section 7A of the Model Regulation, insurance
producers will also need to complete product-specific training through the
insurance carriers whose products they sell. (Note that Oklahoma has not mandated product specific
As of January 1, 2011, Iowa,
have adopted the new Model Regulations and training requirements. In addition, the District
of Columbia, Michigan, New Jersey, New York, Ohio, Oregon, Rhode Island, and West
Virginia have pending legislation and are in the
process of adopting the regulations. All
states must come into compliance with The Dodd-Frank Wall Street Reform and
Consumer Protection Act of 2010, Public Law Number 111-203, 111th Cong., 2d
sess. (July 21, 2010) which requires all states to meet the requirements of the
2010 NAIC Model Regulation by 2013.