HB 1160 Summary

• Amends North Dakota Century Code sections governing annuity transaction practices to establish a "best interest" standard requiring insurance producers to act in consumers' best interest without placing their own financial interests ahead of the consumer's interest.

• Requires producers to exercise reasonable diligence and care to know the consumer's financial situation, understand available options, have reasonable basis for recommendations, and communicate the basis of recommendations before selling annuities.

• Mandates producers disclose their licensing status, authorized products, number of insurers represented, and sources/types of compensation to consumers on a form designed by the insurance department.

• Requires producers to document recommendations in writing and obtain signed consumer statements regarding refusal to provide information or acknowledgment that transactions are not recommended.

• Establishes producer training requirements including a one-time four-hour course covering annuity types, taxation, contract provisions, and appropriate standards of conduct; allows satisfaction of comparable state training requirements.

• Effective January 1, 2022.