Annuity Suitability

This law mandates that all insurance carriers must perform a suitability review on incoming business in order to ensure compliance with regulatory standards.

Annuity suitability. The 2010 Suitability in Annuity Transactions Model Regulation which has been adopted by 27 states sets standards and procedures for suitable annuity recommendations and. Based on the suitability information gathered in the transaction the producer or insurer if no producer is involved must have reasonable grounds to believe the transaction being recommended to the consumer is suitable. However it is not for everyone.

Annuity Suitability involves ensuring there is a reasonable basis to believe the recommendation of an annuity is sensible and appropriate given a clients particular objectives goals and financial situation among other factors. Protective Life is dedicated to providing quality service building trust and simplifying everything for you and our mutual customers. This document provides instructions on how to successfully complete the Annuity Suitability Questionnaire form which is required with all annuity new business applications.

It helps your producer assess your insurance needs and financial objectives and make recommendations appropriate to your situation. All questions must be answered and the form must be signed by each ownerapplicant and the producer. Thank you for your interest in Athenes Fixed Annuity Product.

Annuities and application of the suitability rule to insurance companies The suitability rule is commonly used in the securities industry but less so in the insurance industry. Please return completed form to Athene within 10 calendar days of being signed and provide a copy to the customer no later than delivery of the contract. Or consumer decides to enter into an annuity transaction that is not based on a recommendation of the insurer or the insurance producer.

Renewed interest in the model was prompted in part by work being done at the federal level. SUITABILITY QUESTIONNAIRE FOR FIXED ANNUITIES This form is an essential part of the application process. Section 17498 of the California Insurance Code took effect on January 1 2005.

Suitability can be defined as the quality of having the properties that are right for a specific purpose or situation That is a general definition but the term suitability has a more specific meaning when applied to recommendations of insurance investment and annuity products a meaning which is evolving. An annuity might be an excellent way to ensure a consistent stream of income in retirement as well as protect yourself from common risks such as outliving your savings. Annuity suitability questionnaire The Polish Roman Catholic Union of America is required by your state insurance department to ask information that will help determine whether an annuity contract is suitable for your investment goals and financial situation.