MILWAUKEE – September 28, 2020 – On February 13, 2020, the NAIC formally adopted revisions to its Suitability in Annuity Transactions Model Regulation to increase consumer protections by requiring insurance agents to act in the “best interest” of their consumers when making annuity recommendations. As a premier provider of NAIC annuity suitability training, Quest CE will begin offering updated annuity training by the January 1, 2021 effective date.

Similar to the NAIC’s former model, new producers who intend to sell annuities (depending on state) will be required to take a one-time 4-hour annuity training course. Come the effective date, Quest CE’s 4-hour annuity suitability course for newly licensed producers will include the new best interest standard. Additionally, Quest CE will offer a 1-hour annuity training course covering the best interest standard for previously licensed producers. In most cases, those requiring the one-hour training will need to take the additional course within the first 6 months after their state adopts the new rule.

At the time of this announcement, only Arizona and Iowa have fully adopted the new best interest standards in their annuity suitability training requirement. Other states, including Idaho, Ohio, Rhode Island and Kentucky, are currently in the process of updating their annuity rules. It’s important to note that annuity training taken prior to January 1, 2021 will count towards the existing suitability requirements but will not count towards the new certification requirements.

Mirroring FINRA, SEC, and individual state rules, the new standard requires producers to act in the best interest of the consumer. This means that when making a recommendation to purchase an annuity, an insurance agent must act in the best interest of the consumer without placing the insurer’s financial interest ahead of the consumer’s interest. Additionally, insurance companies have a responsibility to supervise their agents to ensure their compliance with the rule while maintaining compensation systems that will not undermine the best interest of clients.

Over the course of 2020 and beyond, Quest CE will be following the progression of the NAIC Best Interest Rule, along with any other standards individual states adopt. We encourage you to follow along.

To learn more about the NAIC’s suitability update, click here.


About Quest CE

For over thirty years, Quest CE has been the premier provider of compliance training and tracking solutions to the financial services industry. In addition to offering on-demand insurance and designation continuing education, Quest CE provides a complete spectrum of proprietary technology solutions for managing compliance risk exposures.

Serving more than 1,000 leading insurance carriers, broker-dealers, banks, and other financial institutions, Quest CE is committed to providing advanced custom solutions at cost effective rates, while providing a level of service that greatly surpasses that of our competitors. Quest CE is the single source solution for organizations’ training and compliance needs. For more information on Quest CE, visit