18 Questions
What is a producer's obligation when making a recommendation of an annuity?
To act in the best interest of the consumer without placing the producer's or the insurer's financial interest ahead of the consumer's interest
What factors must a producer know about a consumer before making a recommendation for an annuity?
The consumer's financial situation, insurance needs, and financial objectives
What should a producer consider regarding a consumer's risk tolerance when recommending an annuity?
The consumer's willingness to accept nonguaranteed elements in the annuity, among other factors
What must a producer do regarding documentation when recommending an annuity?
Document information relating to care, disclosure, conflict of interest, and the consumer’s financial situation, insurance needs, and financial objectives
What is the main focus of a producer when knowing a consumer's financial situation, insurance needs, and financial objectives?
To provide a recommendation option that addresses the consumer’s financial situation, insurance needs, and financial objectives
In what circumstances should a producer place their financial interest ahead of the consumer's interest when recommending an annuity?
The producer should never place their financial interest ahead of the consumer's interest when making an annuity recommendation
What must a producer consider when making a recommendation for an annuity?
The consumer's financial situation
What must a producer disclose to the consumer before recommending or selling an annuity?
The sources of cash compensation received by the producer
In the case of an exchange or replacement of an annuity, what should the producer consider?
Whether the consumer will incur a surrender charge or lose existing benefits
What is required before selling, soliciting, or negotiating an annuity?
Completion of a 4-hour training course
What action can the Director take for any consumer who is harmed by a violation of laws concerning suitability of annuity sales?
Order corrective action for the consumer
What obligation does the producer have regarding obtaining consumer profile information before recommending an annuity?
Make reasonable efforts to obtain consumer profile information
What is the duty of the producer in making a recommendation for an annuity?
To exercise reasonable diligence, care, and skill
When is a producer not obligated to a consumer?
When the consumer refuses to provide relevant information requested by the producer
What must be considered in the case of an exchange or replacement of an annuity?
Whether the replacing product would substantially benefit the producer
What is required for an insurer's producers before making proper recommendations?
A supervision system through written procedures and periodic record review
'What is one of the disclosure obligations prior to the recommendation or sale of an annuity?' - This question is best suited for which part of the text?
'Disclosure Obligation' section
What is one of the considerations in making a recommendation for an annuity?
Consumer's financial situation
Test your knowledge of the obligations that a producer must fulfill when recommending an annuity, including care, disclosure, conflict of interest, and documentation requirements.
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