Description
This course discusses the role, responsibilities and supervisory functions with regard to the full array of annuity products. State and Federal regulators are aggressively advocating and implementing safeguards around the sales and suitability of annuities. These regulators are looking to the supervisory staff of financial institutions to enforce the rules and guidelines. May be eligible for insurance and professional designation continuing education credit.
Learning Objectives
Upon completion of this section you will be able to:
• Compare fixed and variable annuities and their principal features;Define the principal features of variable annuities
• Describe the typical annuity purchasers with particular focus on their age and income levels;Interpret the principal features of fixed annuities
• Explain the unique factors of working with senior clients including the differences between preretirement and post retirement planning, particular concerns of senior clients (Social Security, retirement plan distributions, Medicare and health coverage, long-term care, etc.), issues relating to diminished capacity of the client, and ethical requirements of working with senior clients;Delineate the principal features of multi-year guarantee annuities
• Outline the ways of determining investor motivation for purchasing an annuity;
• Describe how annuities are taxed at each point in their life cycle; and
• Explain the best-interest standard of care for recommending annuities including the collection of investor profile information, assessing which products would serve the client’s best interest, conflicts of interest, disclosure to the client, documentation, and supervision, plus special rules applicable to replacement transactions.