NAFA Leads the Way – NJ Suitability Requirement Clarified
February 12, 2013 by N/A
Last year the New Jersey Department of Banking and Insurance – Insurance Division announced plans to repeal the suitability rule it had adopted in June 2011, which did not include the insurance producer training requirements set forth in the NAIC Model Regulation, and replace it with a new rule which would include the training requirements and which would bring it into line with the Model. The new rule, N.J.A.C. 11:4-59A, was adopted on February 4, 2013, but, as written, the effective date of the new rule was unclear as to the deadline for completion of the annuity training course for individuals who obtained their life insurance license on or after the February 4th adoption date.
On behalf of a member inquiry, NAFA led the charge and immediately contacted Anne Marie Narcini, Chief of Market Regulation at the Insurance Division, to get clarification on the applicability of the rule’s effective date. Responding to NAFA’s inquiry, along with contacts from other industry trade associations, the Division issued a Bulletin on February 6th stating that “producers newly licensed to sell annuities on or after February 4, 2013 may sell the types of annuities to which the rules apply, but must complete the required training course by August 4, 2013 in order to continue to sell those annuities after that date. This is the same requirement and time frame applicable to producers who were licensed to sell annuities prior to February 4, 2013.”