NAIC Annuity Best Interest Standard State Adoption

As of the state effective date, a new form entitled Insurance Producer Disclosure for Annuities (DM-1510, which is included with this bulletin), must be completed, signed by you and the applicant(s), and submitted with the application. Additionally, a written summary of any oral disclosures provided to the applicant(s) must be submitted with the application.

In addition to the disclosures provided on DM-1510 mentioned above, upon request of the consumer or the consumer’s designated representative, you must disclose: 

(i) A reasonable estimate of the amount of cash compensation to be received by you, which may be stated as a range of amounts or percentages; and 
(ii) Whether the cash compensation is a one-time or multiple occurrence amount, and if a multiple occurrence amount, the frequency and amount of the occurrence, which may be stated as a range of amounts or percentages. 

National Western Life Insurance Company will not accept an application for an annuity if the applicant has not completed Suitability Questionnaire DM-1174 (Florida only: DM1340-FL) or if the product applied for is not based on your recommendation. In addition, if the state has adopted the best interest standard, form DM-1510 must accompany each application.