NAIC Record Keeping Requirements
During the past year, a number of states have adopted the National Association of Insurance Commissioners (NAIC) revised Suitability in Annuity Transaction Model Regulation (#275) (“Model Regulation”) or similar measures. These states have implemented a “best interest of the consumer” framework for annuity suitability. Other states are considering similar actions.
Adopting states include: Alabama (effective January 1, 2022), Arizona (effective January 1, 2021), Arkansas (effective July 9, 2021), Delaware (effective August 1, 2021), Idaho (July 1, 2021), Iowa (effective January 1, 2021), Maine (effective January 1, 2022), Michigan (effective June 29, 2021), Montana (effective October 1, 2021), Nebraska (effective January 1, 2022), North Dakota (effective January 1, 2022), Ohio (effective August 14, 2021) Rhode Island (effective April 1, 2021), Texas (effective September 1, 2021) and Virginia (effective September 1, 2021). We will continue to update you as additional states adopt the new regulation.
As an annuity carrier, we want to make sure you’re aware of the Model Regulation’s record keeping requirements when selling an annuity.
Required Record Keeping
Under the Model Regulation, general agents, independent agencies, and producers must maintain or be able to make available the following records for 5 years* after the insurer completes the insurance transaction:
- Information collected from the consumer;
- Disclosures made to the consumer (including oral disclosure summaries); and
- Other information used in making the recommendations that were the basis for insurance transactions.
These records may be maintained in paper, photographic, micro-process, magnetic, mechanical, electronic media, or by any process that accurately reproduces the actual document.
* The following states adopted a different retention time period than the Model Regulation:
| Adopting State | Required Record Retention Period |
|---|---|
| Alabama or Maine | 3 years |
| Idaho | 5 years after the natural life of the contract |
| Ohio | 8 years |
| Iowa and North Dakota | 10 years |
Please note: Other state and federal laws and regulations regarding record retention may be applicable. It is your responsibility to be familiar with all the laws and regulations of the states in which you do business. Your sales organization also may have specific record retention guidelines. Be sure to check with your back office for their requirements.
Thank you for your business. At Athene, we’re committed to helping take you to the next level.