Wisconsin Annuity Best Interest Training: What Agents Need to Know

Q: Is Annuity Best Interest training one-time or ongoing?

It is a one-time requirement. Once you complete the Best Interest training, you do not need to retake it each renewal period. This is different from Long-Term Care training, which has ongoing requirements. However, the 6 credits do count toward your 24 CE credit total.

Q: Does Annuity Best Interest training count toward my 24 CE credits?

Yes. The 6-hour Annuity Best Interest course is approved Wisconsin CE, so it counts toward your total 24 CE credit requirement. You are getting required training and knocking out a quarter of your credits at the same time.

Q: What is the difference between Suitability and Best Interest?

Suitability meant the annuity product had to be suitable for the customer. Best Interest is a higher standard — you must act in the customer's best interest and not place your own financial interests ahead of theirs. It requires more thorough documentation, disclosure of conflicts of interest, and a clear communication of the basis for your recommendation.

What Is the Annuity Best Interest Requirement?

Back in 2022, Wisconsin changed the rules for how agents sell annuities. Governor Evers signed 2021 Wis. Act 260 on April 15, 2022, and it took effect on October 1, 2022. The law replaced the old "Suitability" standard with a higher "Best Interest" standard for annuity recommendations.

What does that mean in practical terms? Under the old suitability rules, you just had to show that the annuity product was "suitable" for the client. Under Best Interest, you have to go further: you must act in the consumer's best interest and cannot put your own financial interests ahead of theirs. It is based on the NAIC model law and revised the annuity suitability standards in Wis. Stat. §628.347.

Along with the new standard came a training requirement. If you sell, solicit, or negotiate annuity products in Wisconsin, you need to complete a one-time, training course of at least 4 hours on the Best Interest standard. The good news? Those credits count toward your 24 CE total, so you are not doing extra work for nothing.

Quick Facts

Law: 2021 Wis. Act 260, signed April 15, 2022
Effective: October 1, 2022
Credits: 6 CE credits (counts toward your 24 total)
Frequency: One-time requirement (not ongoing like LTC)
Who needs it: All agents who sell, solicit, or negotiate annuities
Applies to: Both individual AND group annuity sales
Provider: CEWisconsin, state-approved provider #20781

Do You Need This Training?

Let me make this as simple as possible. Here is your decision tree:

Quick Decision Tree

You sell, solicit, or negotiate ANY annuity products in Wisconsin → Yes, you need it
You are newly licensed and plan to sell annuities → Yes, you need it
You completed the old "Suitability" training before October 2022 → Yes, you need the updated training
You do not sell annuities at all → No, you do not need it

Important: This applies to both individual and group annuity sales. If you are involved in annuity transactions in any capacity, the training is required.

If you completed the old Suitability training before October 1, 2022, the original deadline to complete either a new Best Interest course or a 1-hour refresher was April 1, 2023. If you missed that deadline, the best course of action is to complete the full Best Interest training now and get it behind you.

What Is the Best Interest Standard?

The heart of the Best Interest standard is the care obligation. Think of it as four things you must do every time you recommend an annuity product. This is a higher bar than the old suitability rules, and it is designed to make sure consumers get recommendations that truly serve their needs, not yours.

The Four Parts of the Care Obligation

Know the consumer. Understand their financial situation, insurance needs, and financial objectives. You cannot recommend a product to someone you have not taken the time to understand.
Know your products. Understand all the product options reasonably available to you. You need to know what you are selling and what alternatives exist.
Have a reasonable basis. You must have a reasonable basis to believe your recommendation effectively addresses the consumer's needs over the life of the product. "It seemed fine at the time" is not good enough.
Communicate clearly. Explain the basis of your recommendation to the consumer. They should understand why you are recommending what you are recommending.

The key difference from the old standard? Under Suitability, you just had to make sure the product was "suitable." Under Best Interest, you must act in the consumer's best interest and you cannot place your own financial interests ahead of theirs. It requires more thorough documentation and more transparent disclosure of any conflicts of interest.

           Bottom line: Best Interest does not mean you cannot earn a commission or make a living. It means you need to be able to demonstrate that your recommendation genuinely serves the consumer first. Document your process, disclose your conflicts, and make sure the product fits the client's actual needs.
        

What the Training Covers

The 6-hour Annuity Best Interest course walks you through everything you need to understand and comply with the new standard. Here is what you will learn:

Types of annuities and classifications — Fixed, variable, indexed, immediate, deferred, and how they differ
Annuity contract features — How contract features like surrender charges, riders, and death benefits affect consumers
Taxation of annuities — Income taxation of both qualified and nonqualified annuities
Primary uses of annuities — Retirement income, accumulation, legacy planning, and when annuities are (and are not) appropriate
The care obligation — The four-part standard described above, in detail
Disclosure requirements — What you must disclose to consumers and when
Conflict of interest management — Identifying, disclosing, and managing conflicts
Documentation requirements — What records you need to keep and for how long
Appropriate sales practices — Replacements, exchanges, and proper disclosure during the sales process

It is thorough, but it is practical. You will come out of this course with a solid understanding of what the law requires and how to apply it in your day-to-day work with clients.

One-Time vs. Ongoing: A Key Distinction

This is one of the most common questions I get, so let me be crystal clear: Annuity Best Interest training is a one-time requirement.

Once you complete it, you are done. You do not need to retake it every renewal period. This is a major difference from Long-Term Care (LTC) training, which has ongoing requirements that you need to satisfy each renewal cycle. However, you can repeat the course in future licensing periods if you like for credit.

           The bonus: Even though it is a one-time requirement, the 6 credits count toward your 24 CE total. That means completing your Annuity Best Interest training knocks out a full quarter of your CE requirement for that renewal period. Two birds, one course.
        

So if you have been putting this off because you thought it was going to be an ongoing hassle, stop worrying. Get it done once and it is off your plate for good.

What Is ClearCert?

ClearCert Compliance Tracking

If you have sold annuities, you have probably heard carriers ask whether your training is "ClearCert approved." Here is what that means:

ClearCert is a compliance tracking system that insurance carriers use to verify that their agents have completed required training. When you complete a ClearCert-approved course, your completion is automatically reported to the ClearCert database. Carriers can then check that database to confirm you are in compliance.

CEWisconsin's Annuity Best Interest course is ClearCert approved, so when you finish, your completion is automatically reported. You will also receive a certificate/diploma that you can forward directly to any carrier that asks for it.

Pro tip: After you complete the training, forward your diploma or certificate to your carriers. Some carriers proactively check ClearCert, but others may ask you to provide documentation directly. Better to be proactive.

Frequently Asked Questions

What is the Wisconsin Annuity Best Interest training requirement?

Wisconsin requires insurance agents who sell annuities to complete a one-time training course covering the Best Interest standard. This requirement came from 2021 Wis. Act 260, signed by Governor Evers on April 15, 2022, and effective October 1, 2022. The training covers the care obligation, disclosure requirements, conflict of interest management, and documentation requirements. It counts toward your 24-credit total.

Is Annuity Best Interest training one-time or ongoing?

It is a one-time requirement. Once you complete the Best Interest training, you do not need to retake it each renewal period. This is different from Long-Term Care training, which has ongoing requirements. However, the 6 credits do count toward your 24 CE credit total for that renewal period.

I completed Suitability training before October 2022. Do I still need Best Interest training?

Yes. If you completed suitability training before October 1, 2022, you needed to complete either a new Best Interest course or a 1-hour refresher course. The deadline was April 1, 2023. If you missed that deadline, you should complete the full 6-hour Best Interest training now.

Does Annuity Best Interest training count toward my 24 CE credits?

Yes! The 6-hour Annuity Best Interest course is approved Wisconsin CE, so it counts toward your total 24-credit requirement. You are getting required training and knocking out a quarter of your credits at the same time.

What is the difference between Suitability and Best Interest?

Suitability meant the annuity product had to be "suitable" for the customer. Best Interest is a higher standard — you must act in the customer's best interest and not place your own financial interests ahead of theirs. It requires more thorough documentation, disclosure of conflicts of interest, and a clear communication of the basis for your recommendation. Think of it this way: Suitability asked, "Could this work?" Best Interest asks, "Is this the right choice for this person?"

Ready to Complete Your Annuity Best Interest Training?

CEWisconsin is a Wisconsin state-approved CE provider (#20781). Our Annuity Best Interest course is ClearCert approved, and the 6 credits count toward your 24-credit total. Get it done today.

Purchase 6 credits for just the Annuity class, or grab all 24 credits for $81.99 and knock out your entire CE requirement.

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Need all 24 credits, not just annuity? Try a One-n-Done course: PPACA & Ethics, AI & Ethics, IRAs & Ethics, or P&C & Ethics.

About the Law: 2021 Wis. Act 260 adopts the best interest standard for annuity sales based on the NAIC model law, revising the annuity suitability standards found in Wis. Stat. §628.347 to provide greater protections for consumers who purchase annuity products. View the full text of the law →