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AAPA 283 — Marketing, Distribution, and Uses of Annuities

Course Type: Traditional Designation Course
Topics: Marketing & Business Acquisition, Retirement & Annuities
Designations: AAPA, ACS
Language: English


AAPA 283 examines the current market for and uses of annuities. It also describes how annuities are developed, priced, distributed, promoted, and regulated in the United States.


  • The Marketing Landscape for Annuities
  • Marketing Basics
  • Uses of Annuities
  • Market Identification
  • Product Development and Financial Design
  • Distribution of Annuities
  • Promotion
  • Linking Sales Practices to Customer Behavior
  • State Regulation of Annuity Marketing
  • Federal Regulation of Annuities

CHAPTER 1: The Marketing Landscape for Annuities

The Financial Services Marketplace

Financial Services Products

Financial Services Customers

The Role of Annuities in the Financial Services Marketplace

Annuities as Retirement Products

Annuities as Savings Products

Annuities as Investment Products

Challenges for Annuity Marketers

CHAPTER 2: Marketing Basics


The Marketing Process

Marketing Exchanges

Marketing Management





CHAPTER 3: Uses of Annuities

Financial Product Concepts

Risk and Return

The Time Value of Money


Annuities as Asset Accumulation Products

Low or Diversified Risk

High Return Potential

Investment Flexibility

Annuities as Asset Protection Products

Protection Against Outliving Resources

Protection Against Premature Death

Protection Against Market Losses

Protection Against Excessive Taxation

Annuities as Asset Distribution Products

Managing Lump-Sum Distributions

Managing Tax Liabilities

CHAPTER 4: Market Identification

Market Segmentation

Bases for Segmenting Consumer and Organizational Markets

Requirements for Effective Segmentation

Market Segments for Individual Annuities

Market Segments for Group Annuity Products

Target Marketing

Evaluating Potential Target Markets

Selecting Target Markets

CHAPTER 5: Product Development and Financial Design

Product Basics

Product Features

Product Functions

Product Development

Product Planning

Comprehensive Business Analysis

Technical Design

Product Introduction

Sales Monitoring and Review

Financial Design of Annuities



CHAPTER 6: Distribution of Annuities

Distribution Systems

Personal Selling Distribution Systems

Third-Party Distribution Systems

Direct Response Distribution Systems

Channel Selection

Customer Characteristics

Company Characteristics

Channel Characteristics

Distribution Intensity

Distribution Channel Management and Control

Channel Conflict

Managing Channel Conflict

CHAPTER 7: Promotion

Promotion Tools

Personal Selling

Sales Promotion



Developing a Promotion Strategy

Defining a Strategic Objective

Selecting a Strategic Approach

Creating an Effective Promotion Mix

Target Market Characteristics

Product Characteristics

Distribution System Characteristics

Company Culture and Characteristics

Competitors’ Actions

Evaluating the Effectiveness of Promotions

Coordinating Promotion Efforts

CHAPTER 8: Linking Sales Practices to Customer Behavior

The Purchase Decision Process

Stage 1: Problem Recognition

Stage 2: Information Search

Stage 3: Evaluation of Alternatives

Stage 4: Purchase Decision

Stage 5: Post-Purchase Evaluation

The Sales Process

Stage 1: Prospecting

Stage 2: Fact Finding

Stage 3: Making the Sales Presentation

Stage 4: Answering Questions and Objections and Closing the Sale

Stage 5: Providing Follow-Up Service

Establishing Customer Relationships

Value of Customer Relationships to Customers

Value of Customer Relationships to Intermediaries and Companies

CHAPTER 9: State Regulation of Annuity Marketing

Structure of State Insurance Regulation

Regulation of Insurance Company Operations

Contract Filing

Unfair Trade Practices

Market Conduct Examinations

Regulation of Annuity Products

Fixed Annuity Products

Hybrid Annuity Products

Variable Annuity Products

Regulation of Annuity Distributors

Producer Licensing

Unfair Sales Practices

Unfair Financial Planning Practices

Regulation of Annuity Marketing

Annuity Advertising Requirements

Annuity Disclosure Requirements

Annuity Replacement Requirements

Annuity Suitability Requirements

Insurer Self-Regulation

CHAPTER 10: Federal Regulation of Annuities

Federal Securities Laws

Federal Regulation of Insurance Company Operations

Federal Regulation of Annuity Products

Variable Annuities

Annuities Used in Individual Retirement Plans

Annuities Used in Group Retirement Plans

Federal Regulation of Annuity Distributors

Registration of Annuity Distributors

Market Conduct

Federal Regulation of Annuity Marketing and Promotion

Advertising Materials and Sales Literature


Internal Exchanges




Course Format

AAPA 283 will be offered only through the end of 2015.

Study materials include print textbooks and Test Preparation Guides (TPGs) with printed and electronic versions of the course's Practice Questions and Sample Exam. Enrollment for an I*STAR, Prometric or Paper exam is purchased separately through LOMANET.

Exam Format

The AAPA 283 exam has 50 questions and a time limit of 2 hours. The exam is available in I*STAR and Prometric only.

Study Materials

Marketing Annuities, Second Edition (LOMA, 2008)
ISBN 1-57974-310-2
PBD Order # 283-10-08

Test Preparation Guide for AAPA 283 (LOMA, 2008)
ISBN 1-57974-311-0
PBD Order # 283-40-08

Ordering printed study materials

For the United States and Canada, you can order study materials for designation courses through PBD by using the form and information below:


PBD Worldwide
P.O. Box 930108
Atlanta, Georgia 31193-0108
Tel: 1-800-887-3723 or 770-280-4178
Fax: 770-280-4150

Additional textbook order forms

Forms include applicable mailing and contact information


Note: Most of the courses require a textbook and a Test Preparation Guide (TPG). Be sure to order all assigned materials as listed in the Education and Training Catalog. Students are responsible for ordering the correct study materials.

How to Enroll

Traditional Course Access

LOMA's traditional-access designation courses teach industry topics using printed study materials and proctored examinations. Study materials include print textbooks and Test Preparation Guides (TPGs) with printed and electronic versions of the course's Practice Questions and Sample Exam. Enrollment for an I*STAR, Prometric or Paper exam is purchased separately through LOMANET.

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