The Nevada Division of Insurance (DOI) has approved new regulations implementing annuity suitability and best interest standards, increasing producer training requirements and holding insurers accountable for compliance verification.
Under the new rules, producers will need to complete four hours of training covering topics such as suitable sales practices, the financial exploitation of vulnerable adults, and disclosure requirements.
According to the DOI, the training aims to ensure producers have a thorough understanding of annuity products while prioritizing consumer interests.
Producers authorized to sell annuities before Nov. 15, 2024, must complete the four-hour training within six months. They may alternatively take a one-hour course focused on best interest standards.
The DOI noted that producers can fulfill the training requirement by completing courses from other states, provided the regulations in those states closely align with Nevada’s new rules, a report from AM Best said.
Insurance Commissioner Scott Kipper stated that the regulations emphasize consumer protections and align Nevada's standards with those of most other states, ensuring marketplace consistency while addressing the needs of state residents.
Training courses will become available on Dec. 13, according to the DOI.
The regulations also require insurers to verify that producers comply with training requirements and to maintain supervisory systems, including submitting annual reports to senior management. These measures aim to enhance accountability within the industry.
The new standards are based on model laws from the National Association of Insurance Commissioners (NAIC). Nevada becomes the 48th state to adopt best interest standards, which now cover about 95% of the US population, according to the American Council of Life Insurers (ACLI).
The ACLI highlighted the significance of these regulations, noting that more than 4.1 million Americans will turn 65 each year through 2027, many of whom lack defined benefit pensions providing guaranteed monthly income during retirement.
In a joint statement with the Association of Insurance and Financial Advisors, the ACLI said the adoption of best interest standards ensures that retirement savers, especially middle-income Americans, receive critical information about long-term financial security options.
The new Nevada regulations follow similar measures enacted by Louisiana in July 2024.
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