Rhode Island Adopts New Best Interest Suitability Regulation Effective 04/01/21

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Effective April 1, 2021

Rhode Island has adopted the National Association of Insurance Commissioners (NAIC) revisions to the Suitability in Annuity Transactions Model Regulation (#275) effective April 1, 2021.*

As adopted, the revisions will impose new requirements on both producers and insurers. As an annuity carrier, we want to make sure you’re aware of key aspects of the new regulation. Most notably, producers are required to act in the best interest of the consumer when recommending an annuity purchase by meeting Best Interest Obligations defined within the regulation.

Here’s what you’ll need to do to meet your Best Interest Obligations for Rhode Island.

* We will continue to update you as additional states adopt the new regulation and approve training courses.

Required training

As part of the Best Interest Standards, Rhode Island has implemented the following regulatory training requirements:

  • If you were licensed in Rhode Island and completed model law training before April 1, 2021, you must complete the 1-hour best interest supplemental training course or the new 4-hour training course on or prior to September 30, 2021.
  • For those licensed on or after April 1, 2021, the new 4-hour training course will be required before selling annuities.

Training is available through the RegEd platform. Once completed, RegEd will notify Athene that you have satisfied your requirement. While Athene will accept training through other platforms, you will need to provide us with proof of completion.

Forms and materials

As previously announced, the following Athene suitability forms have been updated to comply with best interest obligations:

Please note: Your organization may not use Athene suitability forms. Be sure to check with your back office for guidelines.

If your organization uses Athene suitability forms, the revised forms listed above will be required in all states (except FL and NY), whether the new suitability regulation has been adopted or not.

New – Appendix A

With the adoption of the Best Interest Standard, Ohio requires the use of an Insurance Agent [Producer] Disclosure for Annuities form, often referred to as “Appendix A,” beginning August 14, 2021.  For your convenience, we’ve created a version of Appendix A (22712, Ver. 12/20) for you to use.

Important Processing dates for Athene suitability users

For those that use Athene suitability forms, we will require a version of Appendix A (Athene’s form or another version that matches the regulation’s prescribed form) to accompany all applications received by Athene on or after market close (3 p.m. CT) on March 31, 2021.

Please note: Appendix A must be signed by both the producer and customer(s).

All new or revised materials and forms are available now on Athene Connect for all states (except FL and NY) and should be used immediately.

Applications with outdated or missing forms that do not fall within the guidelines above will be considered “not in good order.” Be sure to use up-to-date materials when offering Athene annuities.

Still have questions?

For additional information, and to get a better understanding of Athene’s considerations during the suitability review process, please familiarize yourself with our revised producer guidelines and helpful tips:

Thank you for your business. At Athene, we’re committed to helping take you to the next level.