Do you remember when the National Association of Insurance Commissioners (NAIC) passed the new 2020 Best Interest Standard for selling annuities?

The purpose of this regulation was to “require producers, to act in the best interest of the consumer when making a recommendation of an annuity and to require insurers to establish and maintain a system to supervise recommendations so that the insurance needs and financial objectives of consumers at the time of the transaction are effectively addressed.”

States adopting the updated model created new state-required NAIC training courses for the sale or recommendation of any annuity as well as different forms required related to the new business process for the sale or recommendation of a fixed index annuity (FIA).

As we start 2025, almost the entire United States has adopted the NAIC resolution, which means existing and new producers (agents, advisors, financial professionals) are required to complete additional training to sell annuities.

According to The Standard’s website, existing producers must either complete:

• a NEW four-credit training course approved by the state’s Department of Insurance that includes the Best Interest Standard, OR
• a one-hour supplementary training course specific to the Best Interest Standard.
• New producers must complete the four-credit training course.

AIP Marketing Alliance is sharing a state-by-state breakdown from The Standard’s website showing each state’s effective date and the end of the state’s grace period. California, Indiana, and Nevada are a few states where the deadlines have hit recently.

Insurance carriers also are checking off these required NAIC training boxes as most of the grace periods have ended, which means before processing applications, the required training above must be completed. If the training is not completed, your applications could be delayed or not processed efficiently.

Let’s not have that happen to your valued producers! AIP Marketing Alliance knows of a few platforms that have these NAIC Best Interest Standard state classes available. You can access them through these links on WebCE, RegEd, and Kaplan Financial Education.

We don’t want this mandatory training to slow down 2025 production or affect your agents’/advisors’/producers’ ability to sell annuity products nationwide. Please inform your downline about how this training is required to sell annuities in your specific sales region.

If you have any questions about the NAIC training, please contact Darron Markwood, Vice President of Marketing and Compliance Officer, at darronm@aipma.com. You also can contact AIP Marketing Alliance’s Business Development team for assistance with getting contracted and selling annuities at (800) 783-5206 Press #2.

For more than 40 years, AIP Marketing Alliance (AIPMA), an Integrity Company, serves as a premier life insurance and annuity distribution partner to provide full-service support to independent wholesalers, brokerages and agents from our Troy, Michigan office. NOT AFFILIATED WITH OR ENDORSED BY THE GOVERNMENT OR THE MEDICARE PROGRAM.

AIP Marketing Alliance is committed to STRIVE in ’25 as we support our independent insurance wholesalers and agents. Visit our blog on aipma.com to stay informed on these upcoming launches and learn why wholesalers nationwide choose AIPMA as their distributor for selling life insurance, annuities, long-term care insurance, final expense, and much more. Ask about our lead services, myAIP CRM platform with customizable recruiter portal, and online tools/resources designed to grow your business. The difference is personal.

AIP Marketing Alliance, an Integrity Company, has developed this electronic communication for informational and educational use only. Be advised, AIP Marketing Alliance, Inc. does not provide legal advice, tax advice, or guidance on issues involving securities laws, insurance laws nor securities or insurance regulations. This material should not be relied on as providing any such advice or guidance to either agents or retail consumers. Within this communication, AIPMA shares links for usage as information only. This content should not be interpreted as solicitation to purchase life insurance, annuities, or other products or as advice designed to meet your clients’ specific needs. Content involving fiduciary, tax, or legal advice should be directed to your legal, tax, and financial professionals for specific advice or product recommendations. AIPMA will not accept any legal liability resulting from any use of 3rd party material(s).