Oklahoma adopts NAIC Suitability Model Regulation
08/30/2023
Oklahoma has adopted the new NAIC model regulation for annuity sales. Please refer to the chart below for effective dates of the various requirements. These requirements apply to all new and existing financial professionals.
The biggest component of this regulation includes the adoption of the Best Interest Standard of Care, requiring financial professionals to act in the best interest of the consumer when recommending annuity products.
New state training requirements
While the product training requirement remains unchanged, the state training requirement has been expanded to include the new standard of conduct sales practices.
Financial professionals who have completed the original training requirement before the effective date must complete either a new one-time 4-hour course, or an additional one-time 1-hour course. See chart below for effective dates.
Financial professionals who obtain a life insurance license on or after the effective date must complete the new one-time 4-hour course before selling annuities. In other words, the old 4-hour NAIC Suitability Model Regulation Course no longer satisfies the annuity state training requirement in the states that adopt the new 2020 version of the NAIC Suitability Model Regulation.
All training vendors are working on adding both the new 1-hour and 4-hour training courses that meet the new 2020 regulation requirements. If you’re completing this training via RegEd, the courses are titled:
- Recommending Annuities Under the NAIC Best Interest Standard (Course 490)
- Recommending Annuities Under the New NAIC Best Interest Standard – One Hour Update (Course 491)
If training is not completed through Virtual University or RegEd, a certificate of completion must be sent to Sales Compensation Administration to prove training has been completed.
State training effective dates
| State | Effective date | Model regulation state training requirement |
| Oklahoma |
New Reps:
Existing Reps (those who completed the prior version of the NAIC Model Regulation training):
|
New 4-hour NAIC Model Regulation (Version 2020) course prior to sale If the prior version of the Model Regulation training has been completed already, then they can choose to complete one of the following:
|
State reciprocity
The model regulation indicates that if you complete the general annuity training for one state, it may satisfy the training requirements needed for another state that has adopted the same model regulation. Currently, Oklahoma allows reciprocity with this new model regulation.
Questions?
Please contact the Annuity and Income Solutions Sales team, 866-309-1623.
For financial professional use only. Not for distribution to the public.
Annuities issued by Principal Life Insurance Company®. Securities offered through Principal Securities, Inc., member SIPC, and/or independent broker/dealers. Referenced companies are members of the Principal Financial Group®, Des Moines, Iowa 50392. Principal.com
2955330-062023
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