How to verify an annuity professional
Insurance producers are licensed state by state and carry a National Producer Number. Here is how to check one.
Insurance is regulated at state level, so a producer is licensed by each state they do business in rather than nationally. There is still a single identifier that makes checking straightforward.
The National Producer Number
The NPN is a unique identifier assigned to insurance producers and maintained through the National Insurance Producer Registry. It stays with the individual across states and across employers, which makes it a more reliable thing to ask for than a business card.
What to check
- Licence status in your state, not just some state. A producer licensed elsewhere is not licensed to sell to you.
- Lines of authority. Licences are granted by line — life, health, property, casualty. Annuities fall under the life line.
- Appointments. Producers are appointed by the insurers whose products they sell, which tells you the range they can actually offer.
- Disciplinary history, held by your state department of insurance.
Variable products need more
A variable annuity is a security. Selling one requires a securities registration in addition to the insurance licence, so that person will also have a CRD number and a FINRA BrokerCheck record. If you are being shown a variable product, both are worth checking.
Guarantees are the insurer’s
Annuity guarantees are backed by the issuing insurance company, not by a federal agency. Independent financial strength ratings are published for insurers, and that is a separate question from whether the producer is reputable.
This guide is general information, not financial, insurance, tax, or legal advice. Rules vary by state and by individual circumstance. Speak to a licensed professional about your own situation.