NAIC Working Group Set to Hammer Out Annuity Sales Model Reg
November 6, 2018 by Elizabeth Festa
A key annuity-sales governing committee of the National Association of Insurance Commissioners is set to meet Nov. 15 at the groups’ national fall meeting in San Francisco to hammer out issues before reaching a consensus on a new model regulation to set a standard for annuity sales.
The Annuity Suitability Working Group is scheduled to discuss revisions to a draft the group has been crafting after considering industry and consumer input at an NAIC-hosted October meeting in Chicago. The draft model reg was last updated Oct. 23.
The goal of the state insurance commissioners is not quite a best-interest standard. It is to create standards and procedures for the process of selling annuity products so consumers’ “insurance needs and financial objectives” at the time of the sale are appropriately addressed.
The regulation would be a successor to the former Suitability in Annuity Transactions Model Regulation.
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