New rules for West Virginia’s annuity sales take effect June 8, 2023.

Make sure your training is complete to avoid an interruption in business.

Effective June 8, 2023 the West Virginia Insurance Department will adopt new rules that amend the suitability requirements for all annuity sales in West Virginia.

The purpose of the amended rules is to require financial professionals to act in the best interest of the consumer when recommending an annuity.

Financial professionals will be required to take additional training on the new requirements and submit new forms.

If you are with a broker/dealer, please check with your broker/dealer for any updated requirements.

View the new rules

Take action now: NEW 4-hour general annuity training

To avoid an interruption in authority to sell, solicit, or negotiate the sale of annuities, you must complete the required training as follows:

• If you have already completed an approved 4-hour annuity course prior to June 8, 2023, you must complete an approved 1-hour supplemental training course or the new 4-hour annuity course by December 8, 2023.
• If you have not yet completed an approved 4-hour annuity course, you must complete the new 4-hour annuity course before you can sell/submit business.

This training is supplied by industry vendors such as RegEd and Kaplan.

Allianz Life Insurance Company of North America (Allianz) is required to verify that financial professionals have completed one of the training courses as described above before allowing them to sell an Allianz annuity product.

Please note: Product-specific training requirements have not changed.

NEW financial professional obligations and forms
A financial professional has acted in the best interest of the consumer if they have satisfied the following four obligations:

Care obligation
You must take reasonable steps to:
- know the consumer’s financial situation, insurance needs, and financial objectives;
- understand the recommendation options available;
- have a reasonable basis to believe the recommended option addresses the consumer’s needs and objectives over the life of the product; and
- communicate the basis of the recommendation.

Disclosure obligation
Prior to recommending an annuity, you are required to disclose to the consumer the following:

1. A description of the scope and terms of your relationship with the consumer and your role;
2. A statement as to the product(s) you are licensed to sell;
3. A statement on whether you can sell for more than one insurer;
4. A description of how you are paid, the sources and types of cash compensation and non-cash compensation; and
5. A notice stating the consumer’s right to request additional information regarding your cash compensation.

Conflict of interest obligation
You must identify and avoid – or reasonably manage and disclose – material conflicts of interest, including material conflicts of interest related to an ownership interest. Material conflict of interest means the producer has a financial interest in the sale of an annuity that a reasonable person would expect to influence the impartiality of a recommendation.

Documentation obligation
You are required to make a written record of any recommendation and the basis for the recommendation and maintain the written record in your files.

New Requirements:

Insurance Agent (Producer) Disclosure for Annuities Form:
Prior to you recommending an annuity, you are required to disclose to the consumer certain information to satisfy your obligations regarding care, disclosure, conflict of interest, and documentation. To keep with industry standards, beginning with all applications signed on and after June 8, 2023, Allianz now requires you to use Insurance Agent (producer) disclosure form (ACORD 0660), to comply with the disclosure requirements. You will be required to submit a copy of the signed disclosure with all new business.

Consumer Profile
Allianz has created a new Consumer Profile form (NB6129) to comply with the new requirements. This form replaced the existing suitability form (NB3051) beginning with all applications signed on and after June 8, 2023.

Replacement Comparison
Beginning with all applications signed on and after June 8, 2023, we will require a Replacement Comparison form (NB6023) for each annuity involving replacement as part of a sale. This form is no longer optional. In addition, the rules have increased the replacement look-back time period from 36 months to 60 months.

Allianz continues to be responsible for conducting a thorough suitability review. Insurers are required to conduct oversight of financial professionals to ensure compliance with the new rules. Due to this requirement, Allianz may periodically request documentation from you, including documentation in your client file and written record of a recommendation.