Key Takeaways
- Montana requires suitability analysis before recommending annuity products
- Annuity contracts must include a free look period for consumer review
- Montana follows NAIC Suitability in Annuity Transactions Model Regulation
- Replacement transactions require detailed disclosure and comparison
- Annuities have a 2-year incontestability period
Last updated: January 2026
Montana Annuity Regulations
Montana has adopted comprehensive annuity regulations to protect consumers from unsuitable sales and deceptive practices.
Suitability Requirements
Montana follows 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 |
Annuity Incontestability
Montana law provides for annuity incontestability under MCA 33-20, Section 688A.200 equivalent:
- Contract incontestable after 2 years from issue
- Cannot be contested except for nonpayment
- Protections similar to life insurance policies
Free Look Period
Montana provides a free look period for annuity contracts:
- Buyer can return for full premium refund
- No penalty for exercising free look
- Period begins when contract is delivered
Surrender Charge Disclosures
Montana requires clear disclosure of surrender charges:
| Requirement | Details |
|---|---|
| Disclosure | Must clearly explain in writing |
| Schedule | Must provide surrender charge schedule |
| Free Withdrawal | Must explain any penalty-free access |
Test Your Knowledge
What must a Montana producer do before recommending an annuity?
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