Explaining the Annuity Suitability CE Requirement for Life & Health Agents

By Casey Eschmann
Vice President, Insurance Career Training, Inc.

Published: Thursday, August 1, 2024

Topics Covered:

Why Annuity Suitability Training is Now Required

States Affected

Options for Completing Annuity Training

Outline of our Annuities Course

More About our Webinar CE Program

Why Annuity Suitability Training is Now Required

The National Association of Insurance Commissioners (NAIC) initially adopted Suitability in Annuity Transactions in 2003. This ethical framework was put together by state insurance regulators, consumer representatives, and industry leaders to spell out how companies should operate with the "best interest" of their clients in mind.

In February 2020, the NAIC made significant changes to further define their standards of “Best Interest”. These guidelines aim to help consumers feel confident a company is soliciting appropriate insurance products. The NAIC's business practices help protect consumers, but also defend companies against costly legal action when followed correctly.

In the 2013 court case The People vs. Glenn Andrew Neasham, conflict arose when a star agent sold an annuity product to an elderly woman. The woman then made a large cash withdrawal, prompting bank executives to file a complaint with the California DOI. Prosecutors later discovered the woman was in the early stages of dementia at the time of sale. A highly consequential trial ensued that left the agent jobless, bankrupt, and deemed a criminal.

In conclusion, annuities have become highly scrutinized by insurance regulators in recent years. Most Insurance Departments now require Life, Accident & Health agents to complete a 4-hour continuing education course on Annuity Suitability Best Interest.

Insurance Career Training, Inc. offers a webinar course entitled "Fundamentals of Annuities (Best Interest)" that fulfills this CE requirement.

A different CE course we offer, "Ethical Conduct & Suitability", examines the aforementioned court case in greater detail.

States Affected

As of this update, 41 jurisdictions have implemented the Suitability in Annuity Transactions Model Regulation (#275) revisions: AL, AK, AZ, AR, CO, CT, DE, FL, GA, HI, ID, IL, IA, KS, KY, ME, MD, MA, MI, MN, MS, MT, NE, NM, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, WA, WV, WI, and WY.

Options for Completing Annuity Training

Your Annuities Suitability/Best Interest Requirement can be satisfied by completing an annuities-specific, 4-hour continuing education course through a state-approved provider.

There are hundreds of CE companies in the United States. Our company, Insurance Career Training, offers annuity training within its catalog of 50+ course topics. Our flagship ICT Webinar CE® program allows insurance licensees to complete CE classes with no testing or homework. Producers can purchase "Fundamentals of Annuities" HERE, or on the sidebar to the right (computers only).

Upon purchasing any ICT Webinar CE® class, a receipt will be e-mailed to you showing the date & time your class will be taught. A webinar login link is e-mailed to you 1 day and 60 minutes before your class begins. To successfully complete a course, simply login with the provided link, answer the hourly attendance checks, and ICT will file your CE credits to your insurance department on your behalf.

Insurance Career Training, Inc.

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Over 1,200 live Webinar CE classes streamed annually

Limited Course Catalogs with No Live Webinar Option

Approved CE provider in all 50 states & the District of Columbia

Only operate within one state or geogrpahic region

NO EXAMS or studying required to earn CE hours

CE Credits & Annuity Certification dependent on passing a test

Certificates of Completion Provided, Free of Charge

No Certificates Provided, or Provided at cost to you

Free Rescheduling

No Refunds for Missed Classes

Outline of our Annuities Course

During your participation in our course "Fundamentals of Annuities", your instructor will cover:

Annuity Basics

What is an annuity? What makes them unique? What is a non-qualified annuity? How does the annuity process work over time?
Types of Annuities

We will discuss single vs. flexible premiums, annuity interest options, variable annuities, and how investment in these products has tax ramifications.
Common Annuity Riders

How can life events like custodial care, increased cost of living, death, and disability affect an annuity?
Annuity Contracts and their Parts

The legally-binding roles of the owner, the annuitant, the beneficary, and the insurance company.
Annuity Use Cases, Ethics, and Compliance

When is is appropriate to sell someone an annuity? What legal ramifications may arise if a client is not mentally sound? How can we best protect our business from costly litigation?

More About our Webinar CE Program

Instructor-led CE classes for insurance producers nationwide. Stay compliant by attending live webinar broadcasts and answering hourly roll calls. Credits are submitted the following business day.

Save on CE Classes!

10% off 10 CE credits

20% off 30 CE credits

30% off 24 CE credits

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Frequently Asked Questions

How do I login for my CE class?

Upon purchasing your webinar course, you will be e-mailed a receipt confirming your registration in the upcoming class. This receipt will contain a GoToWebinar link that you will use to login the day of class. Another copy of your login link will be e-mailed to you 1 day and 60 minutes before class begins. The GoTo software works on Desktop, Laptop, iPhone & Android.

Will anyone ask me for my certificate?

When ICT files your CE credits, the course "Fundamentals of Annuities" will be submitted to your state using a course number matching a state-approved annuity course. ICT will then e-mail you a PDF document as confirmation the credits were submitted. This document is for your reference only, but it is common for your company's license administrator to request a copy of this certificate.

How do I verify Insurance Career Training, Inc. is approved in my state?

Although the NAIC has written annuity training guidelines, it is ultimately a state's insurance department that certifies providers to teach the class. You can find Insurance Career Training's provider number in your state HERE. This list will also show the course number for "Fundamentals of Annuities" in your state. For additional provider information, visit your insurance department's website of approved continuing education providers.

What if I miss my Annuities Class?

ICT allows any student who misses a CE class to reschedule, free of charge. You can do this before or after your class begins. Our customer service team will save your CE hours on file and send you an e-mail containing our reschedule form if you do not attend your class.

Do I have to report my class completion to my state?

No - you do not. Our staff will do this on your behalf using your insurance license number. We submit CE credits and e-mail certificates of completion the following business day.

Do I need an insurance license to take this class?

If you are looking to complete this class for educational purposes, enter NO LICENSE in the shopping cart prior to checkout. The state you select does not matter.

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