Update: This article was recently amended on 9/7/22 to reflect changes in regulation.
Several more states are moving quickly to add a best-interest annuity sales standard to its regulation of insurance products. The latest states to adopt the best-interest model law put forth by the National Association of Insurance Commissioners (NAIC) are Hawaii. Minnesota and South Carolina.
In February 2020, the NAIC adopted a model law that articulates a best-interest standard through the following four obligations: care, disclosure, conflict of interest and documentation. With the outbreak of COVID-19, states were slow to adopt the model in the months that followed.
States handle regulations such as this in two ways: either via rules published by state regulators, or as legislation. Here is the latest list of states with adopted regulation:
Alabama
Effective January 1, 2022, Alabama will require producers to act in the best interest of the consumer when recommending an annuity. Producers who have already completed the original training requirement before January 1, 2022 must complete either a new one-time 4-hour course or an additional one-time 1-hour course before June 30, 2022. Producers who obtain a life insurance license on or after the effective date must complete the new one-time 4-hour course before selling annuities.
Quest CE 4-Hour Course: Approved
Arizona
Effective January 1, 2021, Arizona will require producers to act in the best interest of the consumer when recommending an annuity. Producers who have already completed the original training requirement before January 1, 2021 must complete either a new one-time 4-hour course or an additional one-time 1-hour course before July 1, 2021. Producers who obtain a life insurance license on or after the effective date must complete the new one-time 4-hour course before selling annuities.
Quest CE 4-Hour Course: Approved
Arkansas
Effective July 8, 2021, Arkansas will require producers to act in the best interest of the consumer when recommending an annuity. Producers who are already selling annuities have until December 31, 2021, to complete the training. Producers who have already completed an annuity course before 1/1/2021 must complete either a new one-time 4-hour course or an additional one-time 1-hour course by December 31, 2021. Producers who obtain a life insurance license on or after the effective date, must complete the new one-time 4-hour course before selling annuities.
Quest CE 4-Hour Course: Approved
Connecticut
Effective March 1, 2022, Connecticut will require producers to act in the best interest of the consumer when recommending an annuity. Producers who have already completed the original training requirement before March 1, 2022 must complete either a new one-time 4-hour course or an additional one-time 1-hour course before August 31, 2022. Producers who obtain a life insurance license on or after the effective date must complete the new one-time 4-hour course before selling annuities.
Quest CE 4-Hour Course: Approved
Delaware
Effective August 1, 2021, Delaware will require producers to act in the best interest of the consumer when recommending an annuity. Producers who have already completed the original training requirement before August 1, 2021 must complete either a new one-time4 hour course or an additional one-time 1 hour course within 6 months. Producers who obtain a life insurance license on or after the effective date must complete the new one-time 4 hour course before selling annuities.
Quest CE 4-Hour Course: Approved
NEW! Hawaii
Effective January 1, 2023, Hawaii will require producers to act in the best interest of the consumer when recommending an annuity. Producers who have already completed the original training requirement before January 1, 2023 must complete either a new one-time 4-hour course or an additional one-time 1-hour course within six months. Producers who obtain a life insurance license on or after the effective date, must complete the new one-time 4-hour course before selling annuities.
Quest CE 1-Hour Course: Pending Submission
Quest CE 4-Hour Course: Pending Submission
Idaho
Effective July 1, 2021, Idaho requires producers to act in the best interest of the consumer when recommending an annuity. A producer who has completed an annuity training course approved by the department prior to July 1, 2021, must complete within six months either a new one-time 4-hour course or an additional one-time 1-hour course. Producers who obtain a life insurance license on or after the July 1, 2021 must complete the new one-time 4-hour course before selling annuities.
Quest CE 4-Hour Course: Approved
Iowa
Effective January 1, 2021, Iowa will require producers to act in the best interest of the consumer when recommending an annuity. Producers who have already completed the original training requirement before January 1, 2021 must complete either a new one-time 4-hour course or an additional one-time 1-hour course before July 1, 2021. Producers who obtain a life insurance license on or after the effective date must complete the new one-time 4-hour course before selling annuities.
Quest CE 4-Hour Course: Approved
Kentucky
Effective January 1, 2022, Kentucky will require producers to act in the best interest of the consumer when recommending an annuity. Producers who have already completed the original training requirement before January 1, 2022 must complete either a new one-time 4-hour course or an additional one-time 1-hour course before June 30, 2022. Producers who obtain a life insurance license on or after the effective date must complete the new one-time 4-hour course before selling annuities.
Quest CE 4-Hour Course: Approved
Maine
Effective January 1, 2022, Maine will require producers to act in the best interest of the consumer when recommending an annuity. Producers who have already completed the original training requirement before January 1, 2022 must complete either a new one-time 4-hour course or an additional one-time 1-hour course within six months. Producers who obtain a life insurance license on or after the effective date must complete the new one-time 4-hour course before selling annuities.
Quest CE 4-Hour Course: Approved
NEW! Maryland
Effective October 8, 2022, Maryland requires producers to act in the best interest of the consumer when recommending an annuity. Producers who have already completed the original training requirement before October 8, 2022, must complete either a new one-time 4-hour course or an additional one-time 1-hour course within six months. Producers who obtain a life insurance license on or after the effective date must complete the new one-time 4-hour course before selling annuities.
Quest CE 1-Hour Course: Approved, Goes Live 10/10/22
Quest CE 4-Hour Course: Approved, Goes Live 10/10/22
Michigan
Effective June 29, 2021, Michigan will require producers to act in the best interest of the consumer when recommending an annuity. Producers who have already completed the original training requirement before June 29, 2021 must complete either a new one-time 4-hour course or an additional one-time 1-hour course before December 29, 2021. Producers who obtain a life insurance license on or after the effective date must complete the new one-time 4-hour course before selling annuities.
Quest CE 4-Hour Course: Approved
NEW! Minnesota
Effective January 1, 2023, Minnesota will require producers to act in the best interest of the consumer when recommending an annuity. Producers who have already completed the original training requirement before January 1, 2023, must complete either a new one-time 4-hour course or an additional one-time 1-hour course before July 1, 2023. Producers who obtain a life insurance license on or after the effective date must complete the new one-time 4-hour course before selling annuities.
Quest CE 1-Hour Course: Pending Approval
Quest CE 4-Hour Course: Pending Approval
Mississippi
Effective January 1, 2022, Mississippi will require producers to act in the best interest of the consumer when recommending an annuity. Producers who have already completed the annuity training requirement prior to January 1, 2022 must complete either a new one-time 4-hour course or an additional one-time 1-hour course before July 1, 2022.
Quest CE 4-Hour Course: Approved
Montana
Effective October 1, 2021, Montana will require producers to act in the best interest of the consumer when recommending an annuity. Producers who have already completed the original training requirement before October 1, 2021 must complete either a new one-time 4-hour course or an additional one-time 1-hour course before April 1, 2022. Producers who obtain a life insurance license on or after the effective date must complete the new one-time 4-hour course before selling annuities.
Quest CE 4-Hour Course: Approved
Nebraska
Effective July 1, 2021, Nebraska will require producers to act in the best interest of the consumer when recommending an annuity. Producers who have already completed the original training requirement before July 1, 2021 must complete either a new one-time 4-hour course or an additional one-time 1-hour course before December 31, 2021. Producers who obtain a life insurance license on or after the effective date must complete the new one-time 4-hour course before selling annuities.
Quest CE 4-Hour Course: Approved
NEW! New Mexico
Effective October 1, 2022, New Mexico will require producers to act in the best interest of the consumer when recommending an annuity. Producers who have already completed the original training requirement before October 1, 2022 must complete either a new one-time 4-hour course or an additional one-time 1-hour course within six months. Producers who obtain a life insurance license on or after the effective date, must complete the new one-time 4-hour course before selling annuities.
Quest CE 1-Hour Course: Approved, Goes Live 10/1/22.
Quest CE 4-Hour Course: Approved, Goes Live 10/1/22.
North Dakota
Effective January 1, 2022, North Dakota will require producers to act in the best interest of the consumer when recommending an annuity. Producers who have already completed the original training requirement before January 1, 2022 must complete either a new one-time 4-hour course or an additional one-time 1-hour course before June 1, 2022. Producers who obtain a life insurance license on or after the effective date must complete the new one-time 4-hour course before selling annuities.
Quest CE 4-Hour Course: Approved
Ohio
Effective February 14, 2021, Ohio will require producers to act in the best interest of the consumer when recommending an annuity. Producers who have already completed the original training requirement before February 14, 2021 must complete either a new one-time 4-hour course or an additional one-time 1-hour course before August 14, 2021. Producers who obtain a life insurance license on or after the effective date must complete the new one-time 4-hour course before selling annuities.
Quest CE 4-Hour Course: Approved
Pennsylvania
Before selling, soliciting, or negotiating annuity products in Pennsylvania, producers must complete a one-time, 4-hour annuity training course. Effective June 20, 2022, Pennsylvania will require producers to act in the best interest of the consumer when recommending an annuity. Producers who have already completed the original training requirement before June 20, 2022 must complete either a new one-time 4-hour course or an additional one-time 1-hour course within six months. Producers who obtain a life insurance license on or after the effective date, must complete the new one-time 4-hour course before selling annuities.
Quest CE 1-Hour Course: Approved, EXPIRES 12/20/22
Quest CE 4-Hour Course: Approved
Rhode Island
Effective April 1, 2021, Rhode Island will require producers to act in the best interest of the consumer when recommending an annuity. Producers who have already completed the original training requirement before April 1, 2021 must complete either a new one-time 4-hour course or an additional one-time 1-hour course before October 1, 2021. Producers who obtain a life insurance license on or after the effective date must complete the new one-time 4-hour course before selling annuities.
Quest CE 4-Hour Course: Approved
NEW! South Carolina
Effective November 27, 2022, South Carolina requires producers to act in the best interest of the consumer when recommending an annuity. Producers who have already completed the original training requirement before November 27, 2022, must complete either a new one-time 4-hour course or an additional one-time 1-hour course before May 27, 2023. Producers who obtain a life insurance license on or after the effective date must complete the new one-time 4-hour course before selling annuities.
Quest CE 1-Hour Course: Approved, Goes Live 11/27/22
Quest CE 4-Hour Course: Approved, Goes Live 11/27/22
NEW! South Dakota
Effective January 1, 2023, South Dakota will require producers to act in the best interest of the consumer when recommending an annuity. Producers who have already completed the original training requirement before January 1, 2023, must complete either a new one-time 4-hour course or an additional one-time 1-hour course within six months. Producers who obtain a life insurance license on or after the effective date, must complete the new one-time 4-hour course before selling annuities.
Quest CE 1-Hour Course: Approved, Goes Live 1/1/23
Quest CE 4-Hour Course: Approved, Goes Live 11/1/22.
Texas
Effective January 1, 2022, Texas will require producers to act in the best interest of the consumer when recommending an annuity. Producers who have already completed the original training requirement before January 1, 2021 must complete either a new one-time 4-hour course or an additional one-time 1-hour course. Producers who obtain a life insurance license on or after the effective date must complete the new one-time 4-hour course before selling annuities.
Quest CE 4-Hour Course: Approved
Virginia
Effective September 1, 2021, Virginia will require producers to act in the best interest of the consumer when recommending an annuity. Producers who have already completed the original training requirement before September 1, 2021 must complete either a new one-time 4-hour course or an additional one-time 1-hour course before March 1, 2022. Producers who obtain a life insurance license on or after the effective date must complete the new one-time 4-hour course before selling annuities.
Quest CE 4-Hour Course: Approved
NEW! Wisconsin
Effective October 1, 2022, Wisconsin will require intermediaries to act in the best interest of the consumer when recommending an annuity. Intermediaries who have already completed the original training requirement before October 1, 2022, must complete either a new one-time 4-hour course or an additional one-time 1-hour course within six months. Producers who obtain a life insurance license on or after the effective date must complete the new one-time 4-hour course before selling annuities.
Quest CE 1-Hour Course: Approved, Goes Live 10/1/22.
Quest CE 4-Hour Course: Approved, Goes Live 10/1/22.
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