Annuity types, phases, payout options and taxation are covered in the national Annuities guide. New Hampshire's annuity sales standard is the best interest rule in Ins 305, which replaced the older suitability-only standard. Disclosure is governed by Ins 306, and annuity contract provisions by RSA 408:19.

Best interest (Ins 305)

• When recommending an annuity, a producer must act in the consumer's best interest, without putting the producer's or insurer's financial interest ahead of the consumer's (Ins 305.05(a)).
• Insurers must keep a supervision system for their producers (Ins 305.01).
• The rule creates no private cause of action.
• Four obligations: care, disclosure, conflict of interest and documentation.

Care

• Know the consumer's profile (Ins 305.04(c)): age, income, financial situation, objectives, time horizon, existing assets, liquidity needs, liquid net worth, risk tolerance and tax status.
• Replacements. For a replacement or exchange, consider surrender charges, lost benefits, whether the new annuity substantially benefits the consumer, and any other exchange in the past 60 months.
• What care doesn't require. It isn't a fiduciary duty. It doesn't require the lowest-compensation product. It doesn't include ongoing monitoring.

Disclosure. Give the consumer the required disclosure form (Appendix A). It describes:

• the producer's relationship with the consumer
• the products the producer is licensed to sell
• the insurers the producer represents
• the sources and types of compensation

Documentation. Keep a record of the recommendation. If the consumer refuses to give profile information, get a signed statement of the refusal and its consequences.

Scope (Ins 305.03)

• Exempt: annuities funding ERISA pension or welfare plans and certain employer plans.
• Covered: individually solicited annuities, including IRA rollovers and replacements.

Training (Ins 305.06)

• A one-time 4-credit annuity training course is required. New life licensees can't sell annuities until they finish it.
• Producers with training from before 2024 could update by taking either a new 4-credit course or a one-time 1-credit course on best interest sales, replacement and disclosure.

Disclosure and free look (Ins 306)

If the documents weren't given at or before application, the buyer gets a free look of at least 15 days.

Annual report (Ins 306.06). At least annually, the owner gets a report showing:

• the period covered
• accumulation and cash surrender values
• amounts credited or charged
• any outstanding loans

Contract rules

Entire contract (RSA 408:19). The annuity contract plus a copy of the signed, completed application is the entire contract.

Replacement and guaranty protection

• Replacement. New Hampshire's replacement rule (Ins 302) applies to annuities too. It requires:

  • a signed statement on existing coverage
  • the replacement notice
  • notice to the existing insurer within five business days
  • a 30-day refund right

  The New Hampshire Life Policy Provisions guide explains the process.

• Guaranty association. The Life and Health Insurance Guaranty Association covers annuity benefits up to $250,000 in present value per person (RSA 408-F:5).

• Variable annuities need variable products authority. That requires a Life license, passing FINRA Series 63 or 66 (or being a New Hampshire registered representative), and a FINRA CRD number.

Common exam traps

• New Hampshire's best interest rule is Ins 305. It has four obligations and creates no private cause of action.
• Replacement analysis looks back 60 months.
• Annuity training is a one-time 4 credits, and new licensees can't sell annuities until it's done.
• Documents not given at application mean a free look of at least 15 days.