State RegulationsOH specificDifficulty 2/5
Under Ohio's annuity suitability rule, a producer in Akron recommends an annuity to a consumer. What obligation governs the recommendation?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
OAC 3901-6-13(F)(1) imposes a best-interest obligation: when recommending an annuity, the producer must act in the consumer's best interest without placing the producer's or insurer's financial interest ahead of the consumer's, satisfying care, disclosure, conflict-of-interest, and documentation obligations.
Why the other options are wrong
- A) The rule is the reverse - the producer's or insurer's financial interest must never take priority over the consumer's.
- B) The rule requires a best-interest process based on the consumer's profile, not a product-type mandate tied to age.
- C) There is no suitability waiver; the best-interest obligation cannot be signed away.
Memory hook
Best interest: consumer first, commissions never ahead.