State Regulators Unveil Annuity Sales Rules Draft … Here’s What it Means for Advice
October 30, 2018 by Alex Padalka
Members of the National Association of Insurance Commissioners have rolled out a proposal to subject annuity sales to the suitability standard, which one consumer watchdog says doesn’t do enough to protect investors, InvestmentNews writes.
NAIC says the regulation would require that sales of the product “are suitable, in the consumer’s interest and result in transactions involving annuity products so that the insurance needs and financial objectives of consumers at the time of the transaction are appropriately addressed,” according to the draft proposal.
The proposal would force insurers and agents “to concentrate on the client,” Dean Cameron, director of the Idaho Department of Insurance and chairman of the NAIC working group, tells InvestmentNews.