Oregon annuity questions focus on ORS 743.262, Oregon's version of the best-interest standard for annuity recommendations, and on the disclosure and free-look rules in OAR 836-051-0915. Replacement and guaranty association rules also apply to annuities. How annuities work (types, phases, payout options, taxation) is in the national Annuities guide.

Best interest standard (ORS 743.262)

The core duty

• 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 (743.262(3)(a)).
• The duty is met by satisfying four obligations: care, disclosure, conflict of interest and documentation (743.262(3)(b)).

Consumer profile information (743.262(1)(d))

• Gathered before the recommendation.
• Includes items such as age, annual income, liquidity needs, risk tolerance and tax status.
• If a consumer refuses to provide it but still wants to buy, the producer gets a signed statement acknowledging the refusal and its consequences (743.262(7)(b)).

Conflicts of interest (743.262(6))

• Material conflicts must be identified and avoided, or reasonably managed and disclosed.

Training (743.262(13)-(15))

• Producers who got life authority after January 1, 2024 must finish a 4-hour annuity training course from a registered CE provider before recommending or selling annuities.
• The insurer must confirm the training before letting the producer sell its annuities.

Records (743.262(16))

• Information used for a recommendation is kept at least 3 years after the recommendation or sale.

Disclosure and free look (OAR 836-051-0915)

• Face-to-face sales: the applicant receives the annuity Buyer's Guide and disclosure document at or before application. The free look must then be at least 10 days.
• Documents at delivery: if they are first given at delivery, the free look must be at least 15 days.

Replacement

• Oregon's replacement rule (OAR 836-080) covers annuities as well as life insurance.
• The replacing insurer gives a 30-day unconditional right to return.
• Details are in the Oregon Life Policy Provisions guide.

Other Oregon annuity rules

• Nonforfeiture: the Standard Nonforfeiture Law for life insurance doesn't apply to annuities (ORS 743.204(3)).
• Insurable interest: the requirement doesn't apply to annuities (ORS 743.040(4)).
• Guaranty association: the Oregon Life and Health Insurance Guaranty Association protects the present value of annuity benefits up to $250,000 per life (ORS 734.810(11)(b)(F)). Producers may not use it to make sales (734.890).

Common exam traps

• Four obligations: care, disclosure, conflict of interest, documentation.
• Refusal to provide profile information requires a signed acknowledgment. The sale isn't automatically barred.
• Training: 4 hours, for producers licensed for life after January 1, 2024.
• Free look: 10 days if the Buyer's Guide is given at application; 15 days if first given at delivery; 30 days for replacements.
• Guaranty limit for annuities is $250,000, lower than the $300,000 life death benefit limit.