Regulators Consider 0% Nonforfeiture Floor On Deferred Annuities
July 15, 2020 by John Hilton
National Association of Insurance Commissioners’ committee voted Friday to kick off a model law development project to drop the standard minimum nonforfeiture interest rate for individual deferred annuities from 1% to 0%.
Regulators told the Life Insurance and Annuities Committee the nonforfeiture floor reduction is needed by insurers due to COVID-19 impacts. The 10-year Treasury rate fell well below 1% amid the virus outbreak in March and has not recovered.