Annuity Suitability Training Requirement

Effective June 1, 2013, Kansas Administrative Regulation 40-2-14a will be amended to augment the standards and procedures for annuity recommendations and sales.  The changes affect three specific areas:

  1. Establishes a regulatory framework requiring insurance companies supervise annuity recommendations in order to be sure consumers’ financial goals and objectives are being appropriately addressed and holds insurance companies responsible for supervising and monitoring the marketing and sale of annuities;
  2. Requires any producer who engages in the sale of annuities to complete a four (4) hour annuity suitability training course.  Satisfaction of this training requirement for current producers has a deadline of November 30, 2013.  Individuals who obtain a life insurance line of authority on or after June 1, 2013, may not engage in the sale of annuities until the annuity suitability training course has been completed.  Producers are also required to complete on an ongoing basis company-sponsored product-specific training sponsored by insurance company offering the product.
  3. Creates consistency where practical with Financial Industry Regulatory Authority (FINRA) suitability standards.