Regulators debate new indexed-linked annuity rules for nonforfeiture
September 7, 2022 by John Hilton
A regulator subgroup is inching closer to a new actuarial guideline to shoehorn the hot-selling indexed-linked annuities into variable annuity nonforfeiture rules.
The Index-Linked Variable Annuity Subgroup was created last year by a National Association of Insurance Commissioners task force to focus solely on the index-linked annuity products — known variously as structured, buffered or registered indexed-linked annuities.
While classified as variable annuities, the indexed-linked products do not fit into Model 250, which includes the nonforfeiture rules that determine how much money a contract holder can get back if they give up the annuity.