Important – State Adoption of Best Interest Standards!


In February of 2020, the NAIC Membership approved revisions to Model #275 Annuity Suitability & Best Interest Standards. All recommendations by agents and insurers must be in the consumer’s best interest, and agents and carriers may not place their financial interest ahead of the consumers’ interest in making a recommendation. To date, Arizona, Iowa, and Ohio have adopted the Best-Interest Standard with an implementation date of January 01, 2021.


Agent Disclosure Form

For business written in Arizona, Iowa and Ohio, the agent disclosure must be signed by both the consumer and agent and submitted with the application starting January 01, 2021. The Agent Disclosure Form will be in all application packs, except Florida, on the Agent Portal as of January 1, 2021.


Suitability Questionnaire

We have also updated the Suitability Questionnaire and will begin using the new form for all states, except Florida, beginning January 01, 2021


Please note, we will no longer accept outdated Suitability Questionnaires effective January 01, 2021.


Agent Course Requirements for Arizona, Iowa, Ohio and Rhode Island

Arizona, Iowa, Ohio and Rhode Island have updated existing annuity suitability to best interest standards.

Each state requires resident and non-resident producers already licensed to sell annuity products to complete an additional 1-time course covering the NAIC Model’s updated annuity best interest standards of conduct and disclosure requirements.

·     Arizona producers have a 6-month window beginning 01/01/2021, however, existing producers may complete their additional 1-hour of training immediately (Online or Live Webinar)

·     Iowa producers may complete updated training courses approved as of October 1, with a deadline of 06/30/2021.

·     Audio-enabled, online courses are now available in Iowa

·     Enroll Now

·     (AZ & IA) Live 1-hour Annuity Best Interest webinars are already available for enrollment:

·     December 17, 8:30 am Central

·     (IA) Live 4-hour Annuity Best Interest webinars are available for enrollment:

·     December 23, 8:30 am Central

·     Ohio producers have a 6-month window beginning 11/30/2020 to complete a one-time four credit training course provided by a department of insurance approved continuing education provider.

·     Rhode Island‘s updated regulation (230-RICR-20-25-1) will become effective 04/01/2021, and allows producers to begin updated training on or after January 1.

·     New producers licensed on or after January 1, 2021, must complete 4-hour annuity certification course covering annuity types, classifications and primary uses, the parties to the contract, how fixed, variable, indexed, and other product-specific annuity contract provisions affect consumers, how qualified and nonqualified annuities are taxed, appropriate standard of conduct sales practices, and replacement and disclosure requirements.

·     Both the 1- and 4-hour best interest training courses apply toward a producer’s ongoing continuing education requirements when completed in the resident state.


States that have expressed interest in updating existing Rules, Regs, and Legislation include: AlabamaArkansasDelawareKentuckyMichiganNevada, Nebraska, North Dakota, Tennessee, Texas, West Virginia, and Wisconsin.


Sentinel Security Life Insurance Company will continue to provide agents with additional resources and information necessary to aid them in meeting new best interest standards.