Scott Kipper Insurance Commissioner | Official Website
The Nevada Division of Insurance has announced the approval and filing of Proposed Regulation R109-23, which focuses on annuity suitability and best interest standards. The regulation was adopted by Insurance Commissioner Scott Kipper on September 4, 2024, approved by the Legislative Commission, and filed with the Nevada Secretary of State on November 15, 2024. Details of the regulation are 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 process for R109-23 began as R165-18 in June 2018. A workshop in November 2018 led to amendments submitted to the Legislative Counsel Bureau (LCB). However, no action was taken until September 9, 2020, when it was withdrawn and refiled as R152-20. Updates from the National Association of Insurance Commissioners prompted further revisions filed with LCB on January 19, 2022. After receiving feedback in November 2023 and holding public hearings throughout late 2023 and mid-2024, non-substantive changes were accepted before final adoption.
The Legislative Commission reviewed and approved R109-23 by consent on November 15, marking a transparent regulatory process culmination.
Upon approval, efforts commenced to collaborate with continuing education providers in Nevada to develop courses meeting Best Interest education requirements. These courses are expected to be available starting December 13, 2024.
Insurance producers licensed before November 15 must complete updated training within six months if they wish to sell annuities. Those who completed previous training can opt for either a new four-hour course or an additional one-hour course covering Best Interest Standards. Producers licensed after this date must complete updated training before selling annuities.
Training requirements can be met through equivalent courses from other states sharing substantial similarities with this regulation's provisions.
Insurers must verify producer compliance through robust supervisory systems that include annual reporting to senior management. This measure aims to enhance accountability while supporting consumer protection goals set by the Division.
The mission of the Nevada Division of Insurance is focused on protecting consumers' rights in their interactions with insurers while ensuring financial solvency within the industry.
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