HI SB1278

Adopts the National Association of Insurance Commissioners Suitability in Annuity Transactions Model Regulation (dated March 28, 2010) to establish standards for annuity recommendations and transactions in Hawaii.

Requires insurance producers to complete a one-time training course on annuity products by January 31, 2012, covering annuity types, tax implications, sales practices, and disclosure requirements (minimum 4 continuing education credits).

Establishes duties for insurers and producers to obtain consumer suitability information before recommending annuity purchases, exchanges, or replacements, and to maintain supervision systems to ensure compliance.

Prohibits insurance producers from using senior-specific certifications or professional designations that are false, unearned, or from organizations lacking adequate standards for competency, continuing education, and ethical conduct monitoring.

Takes effect July 1, 2011, with annuity training and suitability provisions effective January 1, 2012, to implement federal Dodd-Frank Act protections for seniors against abusive financial services practices.