Before discussing the product specifics of Assurity’s annuities, let’s briefly explain the intent of the annuity suitability Model regulations and the agent’s obligation to satisfy these requirements. 

For states that have adopted the 2020 Model Regulation, agents are required to act in the best interest of the consumer when making a sale or recommendation of an annuity, under the circumstances known at the time, without placing the agent’s or the insurer’s financial interest ahead of the consumer’s interest. 

In other states, regulations require that all recommendations for the purchase or exchange of an annuity must be suitable for the customer based on the information known by the agent when the recommendation is made.  The two standards are similar, but not exactly the same, and agents are required to understand the standard of care that applies to each sale or recommendation of an Assurity annuity.

To help you assess suitability or best interest, depending on the state in which the recommendation is made, Assurity has provided the Agent’s Guide to the Suitability and Best Interest Standards of Care, located on the Agent Center. Some of the information found in the Agent’s Guide will be mentioned in the next few slides. 

It’s important to understand that the agent’s obligation is to ensure annuity suitability or best interest. Prior to making a recommendation, an agent must make a reasonable effort to obtain relevant information regarding their client’s needs and objectives.  

In addition, the agent must submit a “Suitability Acknowledgement” form or  a “Consumer Profile Information” form included with the application.  The form required will depend on the state in which the application is taken:  2020 Model States will require the Consumer Profile Information form, and the Suitability Acknowledgement form is required in all other states.  In 2020 Model States, an Agent Disclosure form is also required. Further, agents must document and retain all information used in making the recommendation to the consumer.

Best Interest – 2020 NAIC Model States

Agents are required to act in the best interest of the consumer, under the circumstances known at the time, without placing the agent’s or insurer’s financial interest ahead of the consumer’s interest.

Suitability – non-2020 NAIC Model States

Recommendations for purchase of an annuity must be “suitable” for the consumer.

Agent’s Guide

To help assess suitability, the “Agent’s Guide to the Suitability and Best Interest Standards of Care” is available on the Agent Center.

Agent Obligations

• Before making a recommendation, an agent must make reasonable effort to obtain information about the consumer’s needs and objectives
• Submit “Suitability Acknowledgment” or “Consumer Profile Information” form, depending on state
• Document and retain all information used in making recommendation

In general, the annuity suitability or best interest assessment will be based on any facts disclosed by the consumer about their other insurance products and investments, and their financial situation and needs. The assessment should also be based on the agent’s good judgment. 

For purposes of assessment, the agent should use the Suitability Acknowledgement or Consumer Profile Information form and recommended questions and guidance in the Agent’s Guide to the Suitability and Best Interest Standards of Care. The Suitability Acknowledgment or Consumer Profile Information form is required with every annuity application and every life insurance application when replacing an annuity. If the form is not submitted with the application, the agent will be notified and have 14 days to submit the form before the application is deemed incomplete.  And remember, in states that have adopted the 2020 Model, the Agent Disclosure for Annuities form is also required.