Regulatory Roundup: Annuity Training Requirements, DOI Scam Phone Calls, and Dollar-Saving Fee Reductions

State-by-state variations of laws, compliance protocols, industry transparency, and general regulatory culture can lend one the impression that keeping up with industry changes is a little bit like herding cats. So, what better way to wrangle some of the more localized insurance news than in a Regulatory Roundup?

On an ongoing basis, in no particular order or rank, we’re wrestling the various regulatory changes, compliance actions, and commissioner decisions into our roundup. As a disclaimer: There’s a lot going on at any given time in these here United States, so this isn’t a comprehensive picture of state-level action by any means. Think of it, instead, as a sampler platter of regulation. 

Also important to note: If we’re recapping interpretations of legal decisions, this is some armchair insurance speculation and not at all legal advice. If you need legal advice, get a lawyer. 

More training, more requirements for those who deal in annuities

Annuities continue to be a hot product for licensed insurance agents and securities brokers. Not surprisingly, states are continuing to work to make sure those who sell them are educated, trained, and always acting in their clients’ best interests. Most states (though not all) have adopted the National Association of Insurance Commissioners (NAIC) Suitability in Annuity Transactions model law. This adoption has brought along with it new training requirements, which states are continuously unveiling. 

This month, several new announcements related to annuities have come out. In California, the state department of insurance has approved three new annuity suitability courses for 2025, each providing four hours of continuing education credits. These are in addition to an existing eight-hour annuities best interest training. 

In Nevada, there are new specific training requirements for resident and nonresident producers who transact in annuities. These include the requirement for “adequate product knowledge” which they may get from an insurance carrier, plus a one-time course of at least 4 CE credits that’s not provided by the insurer. Nevada has released a very detailed description of the types of training, what each must include or not include, and deadlines for completing these credits, which you can find here. If you’re a resident or nonresident license holder in Nevada, you’re going to want to give it a close read. 

The Utah Insurance Department has also issued a bulletin with guidance for its own requirements, clarifying what it means to act in the customer’s best interest when selling or making recommendations about annuities. The short version is that the producer shall not place their own or the insurer’s financial interest above that of the consumer (in case that wasn’t obvious!). This can include considering things like surrender charges, loss of existing benefits, increased fees, and other provisions that may be detrimental to the consumer when a producer recommends buying, canceling, or replacing an annuity. 

Nebraska warns of insurance scams during Medicare enrollment

The Nebraska Department of Insurance wants to remind Nebraskans that it does not sell Medicare insurance and will never call you asking for personal information. It might sound obvious, but recently there have been scam calls targeting Medicare eligible Nebraska residents that appear to be coming from the Nebraska State Health Insurance Assistance Program (SHIP) and Senior Medicare Patrol (SMP). Please note, they are not! Savvy scammers have figured out how to place calls from the department’s real Lincoln-based phone number, but a key difference between these callers and a true Department of Insurance employee is that the latter will never try to sell you insurance or ask for your bank account number.  

Other state regulatory changes

Alaska is proving that every dollar counts by reducing its current fingerprint fees for a number of license classes by $1.25 for individual resident applications. Effective Jan. 1, 2025, the fee for license classes including Insurance Producer, Surplus Lines Broker, Independent Adjuster and many more will be a mere $47.00 instead of the current $48.25. This fee reduction will also impact those with the Nonresident Adjuster Licensing No Home State designation. 

Colorado is transitioning to the SLIP platform for Surplus Lines premium taxes, effective Jan. 1, 2025. Until then, policies, or endorsements on policies effective before Jan. 1 should continue to be reported to the Colorado Division of Insurance using the Colorado Surplus Lines Tax System.

Delaware has re-issued a bulletin that sets forth the procedures for the collection of the assessment that provides, in part, the funding mechanism for the Delaware Health Insurance Individual Market Stabilization and Reinsurance Program (the Reinsurance Program). This bulletin was originally issued in 2019, and has been reissued several times since then. 

Nebraska is updating its existing license classes’ Lines of Authority (LOA) descriptions. This release will take place on the evening of Jan. 9, 2025, and new offerings should be available on Jan. 10. The new LOA descriptions will be available for display and offered for applications through the NIPR gateway.

New Mexico announced that starting Dec. 3, 2024, Brokers and Dealers can conduct audits of single-agent branch offices remotely, given certain conditions are met. Conditions include items such as submitting a written proposal of a remote audit to the Division in advance. This shall remain in effect until Dec. 31, 2025, unless extended or rescinded. 

Ohio posted a notification on Dec. 2, 2024 reminding licensed Ohio title agents and agencies, or their authorized representatives, that they must file an annual title agent/agency review for the filing period spanning Sept. 1, 2023 to Aug. 31, 2024 by the deadline of Jan. 15, 2025. 

Oklahoma posted a notice that Pharmacy Benefit Manager (PBM) license holders will have a new point of contact. The Regulated Industry Services (RIS) division will be responsible for 

initial licensure, renewal of licensure, and review of annual statements. For questions, contact the RIS division at PBMLicensing@oid.ok.gov. 

South Dakota’s Division of Insurance adjusted two rules affecting continuing education, effective Jan. 1, 2025. These rule adjustments are intended to simplify ‌training requirements for producers selling long-term care insurance. Starting in 2025, producers will be required to obtain their mandatory four hours of ongoing training within their normal two-year renewal period by the end of their birth month.

Washington announced that effective Dec. 13, 2024, the state will allow Business Entities to process address change updates electronically. Additionally, existing individual address change processing rules will be updated. 

Leverage AgentSync to manage compliance 

While these points of interest aren’t comprehensive, our knowledge of insurance producer and variable lines broker license and compliance maintenance is. See how AgentSync can help make you look smarter today; head over to the Compliance Library and wrastle up some state-by-state regulation and more jurisdictional updates. If you’re looking for a solution that builds regulations like these into your distribution channel management workflows automatically, AgentSync can help. See us in action or talk to one of our experts today.