Last year, the NAIC adopted a new enhanced "Suitability in Annuity Transactions Model Regulation." Iowa was the first state to adopt the new Model Regulation with an effective date of January 1, 2011. As of the current date, Wisconsin is the only other state that has adopted the law, with an effective date of May 1, 2011. While the new Model Regulation contains many of the same requirements as the previous suitability regulations, there are three significant changes: 1) Carriers "shall not issue an annuity resulting from a recommendation to a consumer unless there is a reasonable basis to believe the annuity is suitable based on the consumer's suitability information." This section mandates that carriers pre-screen all annuity applications before issuing a contract. Reliance Standard began pre-screening all annuity applications in 2009 and will continue to do so. 2) The new Model Regulation mandates that "an insurance producer who engages in the sale of annuity products shall complete a one time (4) credit training CE course approved by the department of insurance and provided by the department of insurance–approved education provider." This requirement must be completed within six months of the effective date of the new Model Regulation. 3) Carriers are also required to "provide product-specific training and training materials which explain all of the material features of its annuity products to insurance producers" before they can recommend a carrier's annuity products to a consumer. Reliance Standard will provide web based product-specific training to Iowa resident producers and non-resident producers soliciting business in Iowa ("Iowa producers") to comply with this requirement. - Iowa Producers not appointed with Reliance Standard after January 31, 2011 must complete the Reliance Standard product-specific training prior to making any recommendation of Reliance Standard annuity products to a consumer.
- Iowa Producers appointed with Reliance Standard on or before January 31, 2011 must complete the product-specific training before making a recommendation of Reliance Standard annuity products to a consumer on or after March 1, 2011.
- In addition to the product-specific training requirement, all Iowa Producers must complete the four (4) hour mandated annuity training course on or before June 30, 2011 to continue to recommend Reliance Standard annuity products. Newly licensed producers must complete the course prior to making any recommendation of annuity products.
You may access and complete the Reliance Standard web based product specific training module by visiting http://rsli.successce.com. SuccessCE and the National Association for Fixed Annuities (NAFA) have partnered to offer the 4 Hour CE course at www.NAFA.SuccessCE.com. The course complies with Iowa's CE requirement. Should you have any questions regarding this bulletin, the new training requirements, or need help navigating the training site, please do not hesitate to contact the annuity sales desk: annuity.marketing@rsli.com or 800-351-7500 x3696. In the next few months, we will make a similar announcement for both Wisconsin resident and non-resident producers soliciting business in Wisconsin as well as other states that pass and implement the new Model Suitability Regulations. After a period of time, but no later than June 16, 2013, we will require all producers (in all states) to take the product-specific training and their states' four hour mandated annuity training course before making recommendations regarding our annuity products to be compliant with the Harkin Amendment of the Dodd–Frank Wall Street Reform and Consumer Protection Act passed in 2010. | 
