Annuity types, phases, payout options and taxation are covered in the national Annuities guide. Nebraska puts its annuity best interest standard in statute, at Neb. Rev. Stat. 44-8101 and following. Nebraska annuities also get the same 10-day free look as life policies.

Best interest standard (44-8102 to 44-8107)

• Purpose. Producers must act in the consumer's best interest when recommending an annuity (44-8102).
• No private lawsuits. The Act creates no private cause of action. A violation is an unfair trade practice enforced by the Director (44-8107).
• Four obligations (44-8106(1)): care, disclosure, conflict of interest and documentation.

Care

• Consumer profile. Know the consumer's age, income, financial situation, experience, objectives, time horizon, liquidity needs, liquid net worth, risk tolerance and tax status, among other items (44-8105(3)).
• Replacements. For a replacement, consider:
  • surrender charges
  • lost benefits
  • whether the new annuity substantially benefits the consumer
  • any other exchange or replacement in the past 60 months
• What care doesn't require. It doesn't require recommending the lowest-compensation annuity. It doesn't create a fiduciary relationship. It doesn't include ongoing monitoring, unless a separate advisory agreement says so.

Disclosure

• Describe your role and how you're paid.
• On request, give a reasonable estimate of your cash compensation. It may be a range, and you say whether it's one-time or recurring.

Documentation

• Keep a written basis for the recommendation.
• Get a signed statement if the consumer refuses to give profile information.

Exempt contracts (44-8104) include:

• annuities funding personal injury structured settlements
• ERISA plans
• certain employer plans

Records are kept five years after the transaction (44-8106(6)).

Annuity training (44-8108)

• A one-time 4-credit-hour annuity course is required. Producers licensed on or after July 1, 2021 may not sell annuities until they finish it.
• The course can't include marketing, sales techniques or a specific insurer's products.
• The insurer verifies completion, using course certificates or NAIC-sponsored database reports.

Free look and other contract rules

• Free look (44-502.05). Every individual life or annuity policy carries a notice that the buyer may return it within 10 days of delivery for a refund. Credit life is the only exception. A returned contract is void from the beginning.
• Pre-need. A pre-need funeral contract is life insurance or a fixed annuity bought solely to pay for funeral services or merchandise (44-4049(10)).
• Creditors. Annuity values are protected from creditors, but aggregate cash, loan and annuity values above $100,000 aren't exempt (44-371).

Variable annuities

• Anyone selling individual variable annuities must be licensed for variable contracts (44-2216). That means a life license plus passing FINRA Series 6 and 63, or 7 and 66. There's no separate Nebraska exam.
• Separate accounts aren't liable for the insurer's other business or other separate accounts (44-2212).

Guaranty protection

The life and health guaranty association covers annuity benefits up to $250,000 in present value, including cash surrender and withdrawal values, per person (44-2703).

Common exam traps

• Nebraska's best interest law is a statute, and it creates no private cause of action.
• Replacement analysis looks back 60 months.
• Annuity training is 4 hours, required before selling for producers licensed on or after July 1, 2021.
• The annuity free look is 10 days, the same as life.
• Annuity records are kept five years.