Key Takeaways
- Rhode Island requires suitability analysis before recommending annuities
- Annuity replacements require detailed comparison disclosures
- Senior-specific protections apply to annuity sales
- Producers must document the basis for annuity recommendations
- Rhode Island follows NAIC model annuity regulations
Last updated: January 2026
Rhode Island Annuity Regulations
Rhode Island has adopted comprehensive annuity regulations to protect consumers from unsuitable sales.
Suitability Requirements
Rhode Island 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 |
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
Consumer Disclosures
- New surrender charge period starting
- Loss of existing benefits or features
- Tax consequences of exchange
- New contestability period for life insurance
Test Your Knowledge
What must a Rhode Island producer obtain before recommending an annuity?
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