Leela
Draft

Insurance annuity sales and best interest

Working draft · Version 1 · Research date 2026-09-14

1. Purpose and scope

Texas Chapter 1115 governs specified annuity recommendations and insurer supervision, with care, disclosure, conflict and documentation duties. Transaction scope and exceptions must be checked. Training details should be confirmed against current TDI instructions.

Confirm the transaction and exclusions, the agent or insurer role, and applicable training requirements. The Texas standard is not a universal rule for every insurance sale.

2. Adoption and accountability

The accountable policy owner must confirm the legal entity, products, customer locations, applicable laws and exemptions before adoption. Maintain an applicability register and obtain management approval of procedures, owners, retention and deadlines. This template does not claim legal review or complete compliance coverage. An industry selection is a suggestion, not evidence of a legal duty.

3. Operating controls

3.1 Document the consumer profile and recommendation

Owner: Recommending agent. Trigger: Before making a covered annuity recommendation.

Collect relevant financial needs and objectives, evaluate reasonably available options and explain why the recommendation addresses the consumer’s situation. Record missing information, replacement considerations and the basis for proceeding.

Evidence: Consumer profile and recommendation rationale.

3.2 Deliver disclosures and address conflicts

Owner: Recommending agent. Trigger: Before or at the legally required point in the recommendation.

Identify required role, product and compensation disclosures and material conflicts. Deliver the required information, obtain the applicable acknowledgments and document conflict management.

Evidence: Disclosure package and conflict assessment.

3.3 Verify training before annuity activity

Owner: Distribution compliance lead. Trigger: Before sale or recommendation and at qualification renewals.

Confirm the required annuity training, product knowledge and license status for the applicable role and transaction. Block unqualified activity and retain course or competency evidence.

Evidence: Training and authorization record.

3.4 Supervise recommendations and remediate exceptions

Owner: Annuity supervision lead. Trigger: Before issuance where required and in risk-based oversight.

Operate an insurer supervision process for covered recommendations. Review exceptions, verify relevant supporting information, track corrective action and maintain records for the governing retention period.

Evidence: Supervisory review and remediation log.

4. Exceptions, review and records

Log deviations with the affected control, risk, interim action, owner and resolution date. Escalate missed statutory duties immediately to the responsible compliance lead; internal exceptions cannot waive law. Keep versioned approvals and follow the confirmed retention schedule and any legal hold. Review after material legal, product or operating changes.

5. Authorities and limitations