Arizona Adopts Best-Interest Standard for Annuity Sales
June 9, 2020 by Allison Bell
Arizona Gov. Doug Ducey last week signed state Senate Bill 1557, a bill that sets a “best interest” interest for the sale of annuities in Arizona.
The new standard, which is set to take effect Jan. 1, 2021, is based on the same National Association of Insurance Commissioners model law that Iowa has used as the basis for its new annuity sales standard law.
The new law requires an agent or broker who sells an annuity to “act in the interest of the consumer under the circumstances known at the time of recommendation is made and without placing the producer’s financial interest ahead of the consumers,” according to the official state legislature bill summary.