MN SF4108

Replaces "suitability" standard with "best interest" obligation requiring insurance producers to act in consumers' interests and not prioritize their own financial interests when recommending annuities.

Establishes comprehensive consumer profile information requirements including age, income, financial situation, risk tolerance, existing assets, liquidity needs, and reverse mortgage status that producers must obtain before recommending annuities.

Creates four core obligations for insurance producers: care (knowing consumer needs and having reasonable basis for recommendations), disclosure (prominently disclosing compensation sources and annuity features), conflict of interest management, and documentation of recommendations.

Requires insurers to establish supervision systems with enhanced review procedures for consumers 65 years or older, eliminate sales contests based on specific annuity volumes, and maintain procedures to identify suspicious refusals to provide consumer information.

Mandates insurance producer training on best interest standards and disclosure requirements by January 1, 2023, with existing producers completing either a new 4-credit or additional 1-credit course; clarifies that compensation alone does not constitute a material conflict of interest.