Annuity Selling - Trust Authorized Personnel Only

Insurance agents and brokers can get into the business of annuity selling as long as they are trained and properly licensed. For example, in California, agents are required to have 8 hours of training in annuities, regulations, laws, and requirements related to annuities, prohibited sales practices, and fraudulent and unfair trade practices. Participating agents will receive a certificate of completion and are then eligible to sell and deal in annuities. The agents have to undergo subsequent 4-hour training periods each time their license is renewed. Agents can attend classes or opt for a home-based training program.

Who Is Authorized To Sell Annuities

Banks and savings institutions that are backed by insurance agencies and insurance agencies that have a valid insurance license can sell annuities. Those dealing with variable annuities must have a federal license from the National Association of Security Dealers. They have to take the series 6 licensing exam, which is administered by the National Association of Securities Dealers (NASD) and will qualify them to sell annuities. While any bank, broker or agent with the proper license can deal with annuity selling, it is an insurance agency that issues the actual annuity contract.

Agents and brokers may opt to get the required licenses and meet the requirements to deal in annuities, but it is a very sensitive issue because many agents and institutions have sold vulnerable senior citizens annuities that were not suited for them on account of the higher commission they get for selling annuities. Some companies that deal in annuity selling have been penalized for pressurizing their customers to transfer annuities to help them earn a commission fee! There are some other fraudulent companies that have successfully sold annuities without being properly licensed, leaving many who wanted to secure their financial future facing uncertainty and insecurity. So if you are interested in dealing with anyone who is involved with annuity selling, check their license, and find out all you can about the insurance firm, especially how reputable and financially secure it is. Consult an attorney or a good financial advisor before committing yourself to buying an annuity from an agent or a firm that is involved with annuity selling.

 

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