Key Takeaways
- Alaska requires a 10-day free look period for annuity contracts
- Alaska follows the NAIC Suitability in Annuity Transactions Model Regulation
- Producers must document suitability analysis before recommending annuities
- Replacement annuities require detailed comparison disclosures
- Senior protections require careful documentation of suitability
Last updated: January 2026
Alaska Annuity Regulations
Alaska has adopted comprehensive annuity regulations to protect consumers from unsuitable sales and deceptive practices.
Free Look Period
Alaska provides a 10-day free look period for annuity contracts:
- Applies to all annuity types (fixed, variable, indexed)
- Buyer can return for full premium refund
- No penalty for exercising free look
- Period begins when policy is delivered
- Variable annuities may have market-adjusted refunds
Suitability Requirements
Alaska adopted the NAIC Suitability in Annuity Transactions Model Regulation:
Producer Duties
Before recommending an annuity, the producer must:
- Make reasonable efforts to obtain customer information
- Analyze whether the recommendation is suitable
- Document the basis for the recommendation
- Disclose all material information about the product
Required Information
| Category | Information Required |
|---|---|
| Financial Status | Income, liquid assets, financial needs |
| Tax Status | Tax bracket, qualified vs. non-qualified funds |
| Investment Objectives | Goals, time horizon, risk tolerance |
| Existing Coverage | Current annuities and life insurance |
| Liquidity Needs | Expected need for funds |
Best Interest Standard
Alaska requires:
- Recommendations in the best interest of the consumer
- Compensation cannot be primary motivator
- Material conflicts must be disclosed
- Enhanced documentation requirements
Senior-Specific Considerations
Alaska producers must exercise special care with senior clients:
Enhanced Suitability Analysis
For older buyers:
- Carefully assess liquidity needs
- Consider health status and life expectancy
- Document why surrender charges are appropriate
- Ensure client understands product features
Documentation Requirements
Producers should document:
- Clear explanation of surrender charges
- Comparison with existing contracts
- How product meets client needs
- Written confirmation of suitability discussion
Replacement Requirements
When replacing an existing annuity, producers must:
Documentation Required
- Comparison statement - Side-by-side comparison of old and new contract
- Replacement form - Signed acknowledgment of replacement
- Suitability analysis - Why replacement is appropriate
- Notice to existing insurer - Notification of pending replacement
Red Flags
The Division of Insurance scrutinizes replacements for:
- Short holding periods before replacement
- Surrender charges not fully explained
- New surrender charge period starting over
- Commission-motivated churning
Surrender Charge Disclosures
Alaska requires clear disclosure of:
| Item | Disclosure Required |
|---|---|
| Schedule | Full surrender charge schedule |
| Duration | How long charges apply |
| Free Withdrawals | Any penalty-free withdrawal options |
| Impact | Effect on retirement planning |
Test Your Knowledge
What must an Alaska producer do before recommending an annuity?
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Test Your Knowledge
What is the free look period for annuities in Alaska?
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