MN SF877

Removes annuities from general insurance suitability provisions and establishes separate, dedicated suitability requirements for annuity transactions in sections 72A.203 to 72A.2036.

Requires insurance producers and insurers to conduct reasonable inquiries to determine suitability based on consumer's age, income, financial situation, investment experience, time horizon, tax status, and other material factors before recommending annuity purchases or exchanges.

Mandates one-time four-credit annuity training course for all insurance producers before selling annuities, with existing producers required to complete training by June 2013 and new producers by June 30, 2013.

Establishes insurer supervision systems to ensure compliance, including producer training standards, pre-issuance review procedures, ongoing monitoring, and annual reports to senior management detailing review findings and corrective actions.

Imposes ten-year record retention requirements for annuity transaction documentation and authorizes the commissioner to impose corrective action, penalties, and sanctions for violations of annuity suitability standards.