New Cross-Border Sales Policy and Form

Starting June 1, 2024, we’re implementing a new cross-border — or non-resident — sales policy to help producers meet or exceed regulatory requirements. Select Find Forms & Materials on your distributor page of our website to get the Cross-Border/Non-Resident Sales form 24045.

Cross-Border/Non-Resident Annuity Sales Policy

A cross-border annuity sale, or a non-resident annuity sale, occurs when a customer purchases an annuity contract outside of their state of residency. 

In general, state insurance authorities prohibit non-resident annuity sales when the owner or applicant has crossed state lines for the sole purpose of buying the annuity. Some states have stricter sales practice rules and prohibit any cross-border sales to their residents. 

The best practice is that the solicitation, application, issuance and delivery of an annuity takes place in the state where the owner or applicant resides. 

When the owner or applicant is an entity, the resident state is the state where the entity operates or is registered or incorporated. Under some circumstances it’s permissible to make a non-resident annuity sale.

When Do We Allow Cross-Border Sales?

The following conditions must be met for a non-resident annuity sale to be permissible:

• A confirmation that the applicant does not live in one of the prohibited states listed below.
• There must be a reasonable connection between the applicant and the non-resident state. The sale must meet one of the following criteria for the owner or applicant:
  • Owns a home in the non-resident state.
  • Owns a business in the non-resident state.
  • Is employed and keeps regular contact with the non-resident state.
  • Has an established business relationship and regular business dealings with a producer who has a permanent business in the non-resident state.
• The applicant should not be in the non-resident state for the sole purpose of purchasing the annuity.
• The solicitation, application, issuance and delivery of the annuity take place in the non-resident state.
• Producers must maintain proper licensure to sell insurance in the state where the solicitation, application, issuance and delivery will occur.
• Producers must only sell products approved in the state.
• Producers must submit our new Cross-Border/Non-Resident Sales form 2045.

We reserve the right to decline any non-resident applications.

When Are Cross-Border Sales Not Allowed?

We’re committed to compliance with applicable insurance laws and regulations. We encourage the highest ethical behavior of those who sell our products.

For these reasons, and based on our interpretation of relevant state insurance laws, regulations and bulletins, we prohibit non-resident sales when the owner or applicant is a resident of the following states:

• Massachusetts
• Minnesota
• Utah
• Washington

As a reminder, we’re not licensed to sell annuities in the state of New York. We will not accept applications for New York residents.

We’ll review all incoming applications and monitor pre- and post-issue activity to ensure compliance with this new policy. A violation of these guidelines may result in the suspension or termination of the producer’s right to sell The Standard’s products. We’ll report infractions to the appropriate regulatory authorities.

We’re committed to complying with regulatory requirements and upholding ethical business practices. It is required that every recommendation you make to purchase or exchange an annuity product be appropriate for the consumer under the applicable standards of care.