The Nevada Division of Insurance (DOI) has introduced new regulations on annuity suitability and best interest standards. These changes will increase producer training requirements and place greater responsibility on insurers for compliance verification.
Producers must now complete four hours of training on topics like suitable sales practices, financial exploitation of vulnerable adults, and disclosure requirements. The DOI stated that the training aims to strengthen producers’ knowledge of annuity products and ensure consumer interests come first.
Producers authorized to sell annuities before Nov. 15, 2024, must complete the training within six months. They can choose between a four-hour course or a one-hour course focused on best interest standards. Producers may also meet this requirement by completing similar training from another state, provided the other state’s regulations are “substantially similar” to Nevada’s.
Insurance Commissioner Scott Kipper highlighted that the new regulations support consumer protection and industry accountability.
By aligning Nevada’s standards with those of the majority of the country, we are ensuring consistency in the marketplace while prioritizing the needs of Nevadans
Insurance Commissioner Scott Kipper
The regulations also require insurers to verify producer compliance and maintain supervisory systems. This includes submitting annual reports to senior management. The DOI stated this measure will further support accountability within the industry.
Producer training courses will be available starting Dec. 13, according to the DOI. Nevada’s regulations align with model laws from the National Association of Insurance Commissioners. The state is the 48th to adopt best interest standards, a move that now covers 95% of the U.S. population, according to the American Council of Life Insurers.
