Question

In which of the following situations would a producer have an obligation to a consumer under the 2020 NAIC Annuity Suitability Model Regulation?

a) When promoting a different financial product
b) When recommending an unsuitable annuity
c) When suggesting a diversified investment
d) When advising on general financial literacy

Answer 1

According to the 2020 NAIC Annuity Suitability Model Regulation, a producer would have an obligation to a consumer when recommending an unsuitable annuity. So, the correct answer is option d.

Step-by-step explanation:

Under the 2020 NAIC Annuity Suitability Model Regulation, a producer would have an obligation to a consumer when recommending an unsuitable annuity. The regulation aims to protect consumers by ensuring that the annuities recommended are suitable for their financial needs and objectives. If a producer suggests an annuity that is not suitable for a consumer, they would be in violation of this regulation and could face consequences.

So, the correct answer is option d.