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UPDATE: States Adopting NAIC Suitability in Annuity Transactions Model

A few years ago, AIP Marketing Alliance shared a blog article about states adopting the NAIC Suitability in Annuity Transactions Model Reg. 275. This article discussed how the NAIC updated its suitability model to include a Best Interest standard that applies to any sale or recommendation of an annuity. Producers now have a care, conflict of interest, disclosure, and documentation obligation that will apply to all annuity carriers with which they do business.

States adopting the updated model will have new state-required NAIC training 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).

The blog article also reviewed how state-required NAIC training courses are required to comply with the regulation and a new Consumer Profile Form will be used in place of the existing suitability form in states that are adopting the new rule. The Consumer Profile Form will be made available on the day that the state launches the new regulation. States that have not approved the new regulation will still use the existing suitability form.

Since that article was published, and as of March 1, 2023, more than 30 states have adopted the Best Interest regulations and their effective dates. Tennessee is the latest state to adopt these regulations.

  • Alabama
  • Alaska
  • Arizona
  • Arkansas
  • Colorado
  • Connecticut
  • Delaware
  • Georgia
  • Hawaii
  • Idaho
  • Illinois
  • Iowa
  • Kentucky
  • Maryland
  • Maine
  • Massachusetts
  • Michigan
  • Minnesota
  • Mississippi
  • Montana
  • Nebraska
  • New Mexico
  • North Carolina
  • North Dakota
  • Ohio
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • South Dakota
  • Tennessee
  • Texas
  • Virginia
  • Wisconsin

If you have any questions, please visit the original blog post for more information and links.

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