Annuities Best Interest Standard
On December 22, 2021, the Governor signed into law Senate Bill 772 which amends Pennsylvania's Suitability of Annuity Transaction Law. The bill requires producers to put the needs of clients first and to act in the client's best interest when recommending an annuity product. This law, known as Act 99 of 2021 (Act 99), will go into effect on June 20, 2022.
All producers licensed to sell annuities must complete a new one-time training course that covers general annuity principles. These principles include the types and uses of annuities, how annuity contract features affect consumers, and tax implications. The course also includes, among other requirements under Act 99, information about the new Best Interest standard of conduct, sale practices, and new replacement and disclosure requirements. The specific training required depends on the prior training that the producer has completed. See Section 403.1-B (A) of Act 99.
- A licensed producer who has completed an annuity training under the prior annuity law (Suitability Standard or Act 48) must complete by December 20, 2022, either:
- A new four (4) credit training course that meets the new annuity requirements under Act 99 and is approved by the Department and offered by an approved education provider;
- A one-time one (1) credit training course that covers the new annuity requirements under Act 99 and is approved by the Department and offered by an approved education provider.
If you are a new producer who will be selling annuities in Pennsylvania, you need to take the new four (4) credit training course that meets the Best Interest standard requirements under Act 99, The course must be approved by the Department, and offered by an approved education provider. Under the law, this training course must be taken on or before the end of the insurance producer's next complete license period occurring on or after June 20, 2022.
Please go to Sircon to find approved continuing education courses related to the new Best Interest requirement. Click on "Approved Courses Inquiry" to begin a search.
If you have additional questions about the new Act, visit our FAQs page.