2.2 Oregon Annuity Regulations
Key Takeaways
- Oregon requires suitability analysis before recommending annuity products
- Annuity contracts must include a free look period for consumer review
- Oregon follows NAIC Suitability in Annuity Transactions Model Regulation
- Replacement transactions require detailed disclosure and comparison
- ORS 746.085 regulates replacement of life insurance
Last updated: January 2026
Oregon has adopted comprehensive annuity regulations to protect consumers from unsuitable sales and deceptive practices.
Suitability Requirements
Oregon follows the NAIC Suitability in Annuity Transactions Model Regulation:
Producer Duties
Before recommending an annuity, the producer must:
- Make reasonable efforts to obtain customer information
- Analyze whether the recommendation is suitable
- Document the basis for the recommendation
- Disclose all material information about the product
Required Information
| Category | Information Required |
|---|---|
| Financial Status | Income, liquid assets, financial needs |
| Tax Status | Tax bracket, qualified vs. non-qualified funds |
| Investment Objectives | Goals, time horizon, risk tolerance |
| Existing Coverage | Current annuities and life insurance |
| Liquidity Needs | Expected need for funds |
Free Look Period
Oregon provides a free look period for annuity contracts:
- Buyer can return for full premium refund
- No penalty for exercising free look
- Period begins when contract is delivered
Replacement of Life Insurance (ORS 746.085)
Oregon regulates the replacement of life insurance to protect consumers:
- Detailed disclosure requirements
- Comparison of existing and proposed coverage
- Protects consumers from unsuitable replacements
Senior-Specific Protections
Oregon has protections for annuity sales to seniors:
Enhanced Disclosures
Seniors must receive:
- Clear explanation of surrender charges
- Comparison with existing contracts
- Written confirmation of suitability
- Information about withdrawal restrictions
Test Your Knowledge
What must an Oregon producer do before recommending an annuity?
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