The Nevada Division of Insurance has announced the approval and filing of Proposed Regulation R109-23, concerning annuity suitability and best interest standards. This regulation was adopted by Insurance Commissioner Scott Kipper on September 4, 2024, received approval from the Legislative Commission, and was filed with the Nevada Secretary of State on November 15, 2024. The regulation is available on the Division's website.
Proposed Regulation R109-23 mandates training for insurance producers selling annuities to ensure they have comprehensive knowledge about annuity products and prioritize consumer interests. This includes a minimum of four hours of instruction covering suitable sales practices, financial exploitation of vulnerable adults, and clear disclosure requirements.
"With this regulation, we are reinforcing the Division’s commitment to consumer protection and industry accountability," said Insurance Commissioner Scott Kipper. "By aligning Nevada's standards with those of the majority of the country, we are ensuring consistency in the marketplace while prioritizing the needs of Nevadans.”
The development of R109-23 began as R165-18 in June 2018. Following a workshop in November 2018, amendments were submitted to the Legislative Counsel Bureau (LCB). No action was taken until September 2020 when it was withdrawn and refiled as R152-20. The National Association of Insurance Commissioners updated its model regulation during this period, prompting revised language filings with LCB in January 2022. After several revisions and hearings throughout 2023 and 2024, including significant stakeholder feedback and non-substantive changes proposed by the Division, R109-23 was officially adopted.
The Legislative Commission approved R109-23 on November 15, 2024. The regulation became effective immediately upon approval. The Division is collaborating with Nevada continuing education providers to launch new courses meeting Best Interest education requirements by December 13, 2024.
Insurance producers who obtained their license before November 15, 2024, must complete updated training within six months if they wish to sell annuities. Those licensed after this date must complete training before engaging in sales. Training requirements can be satisfied through equivalent courses from other states.
Insurers are responsible for verifying producer compliance and maintaining supervisory systems with annual reporting to senior management to enhance accountability.
The Nevada Division of Insurance aims to protect consumer rights in insurance interactions and ensure insurer solvency.