275 certification policy form 2025

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A producer acts in the best interest of the consumer when the producers recommendation to the consumer is based on an evaluation of the relevant suitability information of the consumer and reflects the care, skill, prudence, and diligence that a prudent person acting in a like capacity and familiar with such matters
To satisfy the care obligation a producer in making a recommendation shall exercise reasonable diligence, care and skill to: Know the consumers financial situation, insurance needs and financial objectives. Understand the available recommendation options.
The SECs Regulation Best Interest (Reg BI) under the Securities Exchange Act of 1934 establishes a best interest standard of conduct for broker-dealers and associated persons when they make a recommendation to a retail customer of any securities transaction or investment strategy involving securities, including
(i) The insurer shall annually provide a written report to senior management, including to the senior manager responsible for audit functions, which details a review, with appropriate testing, reasonably designed to determine the effectiveness of the supervision system, the exceptions found, and corrective action taken
The purpose of this regulation is to require producers, as defined in this regulation, to act in the best interest of the consumer when making a recommendation of an annuity and to require insurers to establish and maintain a system to supervise recommendations so that the insurance needs and financial objectives of
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The NAIC membership approved revisions to Model #275 in February of 2020 clarifying that all recommendations by agents and insurers must be in the best interest of the consumer and that agents and carriers may not place their financial interest ahead of the consumers interest in making a recommendation.

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