NAIC Requires Risk Assessment in its 2020 Annuity Suitability Rules

Did you know that the NAIC (National Association of Insurance Commissioners) has a REQUIREMENT in their 2020 annuity suitability rules that advisors MUST do an investment risk tolerance assessment with EVERY client. To download the 2020 NAIC rules, click on the following:

Who cares about the NAIC?

The NAIC “Annuity Transactions Model Regulations” are ones that states typically adopt as “best practices.” I was told by the NAIC that Iowa and Arizona have adopted the new model regulations. That means these regulations may be coming to your state sometime soon!

It’s a MISTAKE not to use a “risk tolerance assessment tool” with your clients. Why?

  1. It’s needed for compliance/suitability (see the NAIC model rules).
  2. It’s very helpful in determining what fixed products and what type of AUM offering should be used to help clients accomplish their financial planning goals.
  3. It can be GREAT for lead gen.

OnPointe’s “Industry Best” Risk Assessment Tool

If you want to try the OnPointe investment risk tolerance assessment tool yourself (the client questionnaire), click on the following image

When we built the OnPointe Investment Risk software, we made sure that our client questionnaire would be hands down the best in the industry. By best, I mean the most real world.

OnPointe’s biggest risk assessment tool comptetitor asks ridiculous questions like:

  • Would you be happy with a 10% return while risking a 10% drawdown?
  • or a 12% return while risking a 12% drawdown?
  • or an 8% return while risking an 8% drawdown?

These questions are from a fantasy world since there has NEVER been a time in the stock market where you could generate these types of returns with the type of drawdown listed for each.

OnPointe does NOT ask such ridiculous questions to assess risk.

3-Bucket Sales Approach

Inside the OnPointe risk assessment tool, we built a simple but powerful optional 3-bucket sales approach. The client or lead fills in the buckets and tells you where they think their money should go.

Bucket #1 is an FIA
Bucket #2 is an IUL or tactically managed money
Bucket #3 are your “in the market” investments

It’s the classic Keep It Simple Stupid (KISS) approach that clients appreciate and it helps facilitate a sales process that has been proven to work by many successful advisors.


It’s rare to find a tool that can help with compliance, suitability, and sales, but the OnPointe client questionnaire does just that.

  • Why are you NOT using a risk assessment tool with EVERY client?
  • Why are you not using a risk assessment tool for lead generation?

Only $25 a month 

The OnPointe investment risk assessment tool (client questionnaire) costs ONLY $25 a month. To download an order form so you can start using this powerful tool, click on the following link:

You can put the questionnaire on Facebook, Twitter, Instagram, and LinkedIn and capture an UNLIMITED amount of leads. You can use it with an UNLIMITED amount of clients.

  • You can put a badge on your website suggesting that people find their own risk tolerance.
  • You can put a link on your email signature doing the same:

Joe Advisor
1234 Marketing St.
Anywhere, FL

What is your excuse for not using the industry’s best risk tolerance client questionnaire?

Roccy DeFrancesco, JD, CAPP, CMP
Founder, The Wealth Preservation Institute
Co-Founder, The Asset Protection Society