Contact: Drew Pearson, Public Information Officer
Phone: Phone: (775) 687-0772
E-mail: dpearson@doi.nv.gov

FOR IMMEDIATE RELEASE – December 6, 2024

Nevada Division of Insurance Announces Approval Filing of Proposed Regulation R109-23- Annuity Suitability

[CARSON CITY, NV] — The Nevada Division of Insurance (Division) is pleased to announce the approval and filing of Proposed Regulation R109-23- Annuity Suitability and Best Interest Standard. Adopted by Insurance Commissioner Scott Kipper on September 4, 2024, the regulation was subsequently approved by the Legislative Commission and filed with the Nevada Secretary of State on November 15, 2024. A copy of the regulation can be found on the Division’s website at https://doi.nv.gov/News-Notices/Regulations/

Proposed Regulation R109-23 introduces mandatory training for insurance producers who sell annuities, ensuring they possess comprehensive knowledge about annuity products and prioritize consumer interests. This includes a minimum of four hours of instruction on essential topics such as suitable sales practices, the financial exploitation of vulnerable adults, and clear disclosure requirements.

"With this regulation, we are reinforcing the Division’s commitment to consumer protection and industry accountability," said Insurance Commissioner Scott Kipper. "By aligning Nevada's standards with those of the majority of the country, we are ensuring consistency in the marketplace while prioritizing the needs of Nevadans.”

Historical Timeline of R109-23

The journey of R109-23 reflects the Division’s steadfast dedication to regulatory excellence. This regulation originated as R165-18, proposed on June 22, 2018. A workshop held on November 14, 2018, led to amendments submitted to the Legislative Counsel Bureau (LCB). However, no action was taken by LCB until September 9, 2020, when the regulation was withdrawn and refiled as R152-20.

During this time, the National Association of Insurance Commissioners (NAIC) updated its model regulation, prompting the Division to file revised language with the LCB on January 19, 2022. The LCB replied on November 1, 2023, when the regulation was renumbered as R109-23 and returned to the Division.

On December 18, 2023, the Division held a public hearing on R109-23, where stakeholders highlighted significant deviations from the NAIC model. The Division promptly amended the language and resubmitted it to LCB. Corrected language was received on May 13, 2024, and another hearing was conducted on July 11, 2024. During this session, the Division proposed non-substantive changes, which were accepted, and the Commissioner officially adopted the regulation.

The Legislative Commission reviewed and approved R109-23 by consent on November 15, 2024, marking the culmination of a rigorous and transparent regulatory process.

The regulation became effective upon approval and the Division is currently working with Nevada continuing education providers to launch their new education courses that meet the Best Interest education requirements. These courses are projected to become available December 13, 2024.

Enforcement and Resources

Insurance producers who obtained the lifeline of authority prior to November 15, 2024, and wish to sell annuities are required to complete the updated 4-hour training within six months. Producers who previously completed an annuity training course can complete either of two new courses; a 4-hour course, or an additional 1-hour course that covers the Best Interest Standard.

Producers who obtained the lifeline of authority on or after November 15, 2024, must complete the updated 4-hour training before engaging in the sale of annuities.

The training requirements of this regulation can be satisfied by successfully completing the training requirements of another state that shares substantial similarities to the provisions of this regulation.

Insurers are tasked with verifying producer compliance and maintaining robust supervisory systems, including annual reporting to senior management. This measure strengthens accountability and supports the Division’s mission to safeguard Nevada consumers.

About the Nevada Division of Insurance

The mission of the Nevada Division of Insurance is to protect the rights of Nevada consumers in their experiences with the insurance industry and to ensure the financial solvency of insurers. For more information about the Division of Insurance, visit DOI.NV.GOV or follow the Division on

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