Annuity News

December 2011

Producer Advisory: Suitability Of Annuity Sales

From:
Diane Hodgman, ChFC, AIRC
Compliance Analyst, Individual Annuities

State:
Illinois

Rule:
3120.20 – .90
Company Bulletin 2011-13

Effective:
September 26, 2011

Operative:
July 1, 2012

Subject:
Date Extended for New Illinois Annuity Suitability Rule

In response to industry concerns over the Sept. 26, 2011 effective date for new Illinois annuity suitability requirements under Rule 3120.20 - .90, the Illinois Department of Insurance has extended the rule's operative date to July 1, 2012. (Illinois extended the date on Oct. 31 in Company Bulletin 2011-13.)

On Nov. 1, The Standard published a producer advisory describing the rule. We were to begin reviewing Illinois annuity applications for suitability on Dec. 1, 2011. Due to the Illinois date extension, The Standard will begin reviewing Illinois annuity applications for suitability on July 1, 2012. Producers still have until July 1, 2012 to complete their four-credit continuing education annuity course.