New Arkansas, Idaho, and Michigan Suitability Requirements and New Replacement Comparison Form (All States Except Arkansas and Florida)
Effective June 29, 2021
NEW ARKANSAS, IDAHO, AND MICHIGAN NAIC SUITABILITY REQUIREMENTS
On February 13, 2020, the National Association of Insurance Commissioners (NAIC) approved an update to the Suitability in Annuity Transactions Model Regulation. The updated regulation adds a requirement for producers to “act in the best interest of the consumer when making a recommendation of an annuity”, as well as other associated requirements. Subsequently, Arkansas, Idaho, and Michigan each adopted the revised model with an effective date of June 29, 2021.
|
Sagicor has implemented the following to comply with the new requirements for producers selling annuities in Arkansas, Idaho, and Michigan. Note that all the identified forms:
1. May be downloaded and printed from Sagicor’s Producer Portal.
2. Will automatically be included in all annuity eApplication packets.
As a reminder, please always print required paper forms from the Producer Portal, as forms may be updated from time to time. Properly completed forms must be submitted with every Arkansas, Idaho, and Michigan annuity application on or after June 29, 2021. NO EXCEPTION WILL BE GRANTED. |
|
|
Suitability Best Interest Form: Sagicor’s current Annuity Suitability Best Interest Form has been revised to include information to assist in documenting best interest. The new Annuity Suitability Best Interest Form includes additional questions relating to the consumer’s disposable income and a breakdown of their current debt obligations.
Producer Disclosure Form: The revised model regulation requires the producer at the outset of their relationship with a consumer, to inform the consumer in writing of:
· The scope and terms of the producer’s and consumer’s relationship.
· The types of products the producer is authorized to sell.
· A description of the sources and types of cash and non-cash compensation the producer will receive.
This disclosure must be signed by both the consumer and the producer. To assist producers in complying with this requirement, Sagicor has developed a disclosure form, and a properly completed and executed form is required to be submitted with each annuity application.
Training:
· Each producer who holds a life insurance license as of June 29, 2021, and has previously completed an approved 4-hour annuity suitability training course shall complete an additional 1-hour state-approved course by no later than December 28, 2021. If the producer has not completed the additional 1-hour course during this six-month period, the regulation requires the producer to complete a new 4-hour state-approved annuity suitability training course before they can submit new annuity applications to Sagicor.
· Producers who have not completed a state-approved 4-hour annuity suitability training course by June 29, 2021, will be required to complete the new state-approved 4-hour training course before they can submit annuity applications to Sagicor.
· The 4-hour credit course and the 1-hour credit course will not be offered by Sagicor, but instead must be taken from a department of insurance-approved education provider. Once a course has been completed, please provide Sagicor with the certificate of completion or other evidence of completion.
|
NEW SUITABILITY REPLACEMENT COMPARISON FORM (ALL STATES EXCEPT ARKANSAS AND FLORIDA)
To better assist Sagicor in complying with best interest standards and other state suitability and replacement regulations, Sagicor has implemented a new Replacement Comparison Form effective June 29, 2021.
· This form is required for all annuity replacements.
· Arkansas and Florida has their own required state specific Replacement Comparison Form.
· The new form will request producers to submit a copy of the most recent annuity statement from the existing carrier.
· If the replacement includes the purchase of a Sagicor SPIA, please also provide an in-force annuitization quote from the existing carrier.
· Statements and in-force annuitization quotes may be submitted via the Producer portal https://agent.sagicorlifeusa.com/wps/portal, emailed to suitability@sagicor.com or via fax to 480-425-5130.
As always, Sagicor is committed to making the transition to the new form(s) and other regulatory requirements as convenient as possible. For more information, please call the Producer Resource Center at 888-724-4267, ext. 4680, or email PRC@SagicorLifeUSA.com. |
|
|
Insurance and annuities issued by Sagicor Life Insurance Company and not available in all states. Home Office: Scottsdale, AZ.
Sagicor is rated “A-” (Excellent) by A.M. Best Company (4th best out of 16 possible ratings), affirmed as of September 11, 2020. Rating based on the claims-paying ability of issuing insurer.
Insurance Professional Only. No Public Distribution.
SR-EM22001 | June 28, 2021 |
|
|
|
