NAIC Best Interest for annuities effective in West Virginia on June 8th, 2023.

Here are details and updated information that you need to know to conduct annuity business on or after the effective dates.

NAIC Best Interest Financial Professional Training

Newly licensed financial professionals – you must complete all necessary training prior to submitting new business applications beginning on June 8^th, 2023.

Financial Professionals who have already completed the existing NAIC Suitability 4-hour training course must, by December 8^th, 2023 complete:

·    A new four (4) credit training course approved by the Department of Insurance

o  Reg Ed: Recommending Annuities Under the NAIC Best Interest Standard #490

o  Kaplan course: Annuity Suitability and Best Interest Standard #110759

or

·    An additional one-time one (1) credit training course approved by the Department of Insurance and provided by the Department of Insurance-approved education:

o  Reg Ed: Recommending Annuities Under the New NAIC Best Interest Standard #491

o  The expiration date for this course is December 8^th, 2023. At this point, the course will be unavailable and the 4-hour training course must be taken if the 1-hour course has not been completed.

o  Kaplan course in WV: Annuity Suitability and Best Interest Standard #110758

If the 1-Hour training course is not completed by the required date, the 1-Hour course will expire and only the 4-Hour course will be available to take in order to complete your NAIC Best Interest training. Nationwide will verify completion of this training December 8^th, 2023.

New Form Requirements

Any new Fixed, Fixed Index or Immediate Annuity business submitted on or after the Compliance effective date will require the following form(s) to be submitted with the application in order for new business to be processed:

If Nationwide performs suitability reviews your firm’s suitability reviews:

·    As of the Compliance effective date, Fixed, Fixed Index or Immediate Annuities, the NAIC Agent Disclosure form FAF-0584AO will be required to be submitted

·    The Customer Profile for Fixed Annuity Products form FAF-0633AO

If Nationwide does not perform your firm’s suitability reviews:

·    Please inquire with your firm on their requirements with this change.

Otherwise please inquire with your firm on their requirements with this change.

See our website for additional information.

It is important that you maintain a record of the client information collected, documentation relating to the recommendation, and whether the client elected to purchase an annuity contract. All active client files should be maintained indefinitely and all inactive client files for seven (7) years.

You must also follow your Firm’s policies and procedures including the Books and Records requirements. It is important to understand that a state examiner could request this information from you as part of a complaint or regulatory inquiry.

Please disregard if you have already completed your training.