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Annuity Suitability/Best Interest Product Training

Suitability/Best Interest Assessment: Purchase & Replacement

As mentioned, recommended questions for assessment can be found in the Agent’s Guide. Here are the types of questions you’ll find:

How will this purchase help the consumer meet their insurance needs and financial objectives? 

If the consumer were a close friend or relative with similar insurance needs and financial objectives, would you agree that the recommendation is suitable or in the consumer’s best interest? 

In assessing the replacement of a product, additional questions are suggested. For example: is there a surrender charge and/or tax consequences associated with the replacement transaction? 

What new product features or benefits are not available in the existing product? 

This is just a sampling; many similar, helpful questions can be found in the Agent’s Guide.  These questions can be useful whether the agent is assessing the sale for suitability or for best interest.  For best interest, the agent must also satisfy the Care, Disclosure, Conflict of Interest, and Documentation obligations set forth in the regulations and explained in more detail in the Agent’s Guide.


Purchase/Exchange Assessment Questions

  • How will this purchase help the consumer meet their insurance needs and financial objectives?
  • If the consumer were a close friend or relative, would this recommendation be suitable?

Replacement Assessment Questions

  • Are there surrender charges and/or tax consequences associated with the replacement?
  • Are there features or benefits in the Assurity annuity not available in the applicant's existing contract?