Annuity Suitability: The Method To The Madness
February 5, 2024 by Charlie Gipple, CFP, CLU, ChFC
In this same Broker World edition, you will see another article entitled, “Options For Being A Registered Rep And Also Selling Indexed Annuities.” In this article I reference NASD 05-50 that happened in 2005, and also SEC 151A that was vacated in 2009. These proposed rules sought to effectively put indexed annuities in the same category as securities when it comes to how indexed annuities are regulated and sold.
As a result of these previous attempts to categorize fixed indexed annuities as securities, there have been “regulatory concessions” made—if you call it that—by the insurance regulators that included additional annuity suitability training for agents and also more forms when it comes to writing fixed annuities. These new requirements came largely in the form of the “2010 Suitability in Annuity Transactions Model Regulation.” This regulation did three things that I list verbatim from the regulation.
I never thought of it that way, but he’s right.
His article in this month’s Broker World provides tips on what can result in an annuity suitability decline. GREAT intel!
Also in this issue, Charlie discusses options for being a registered rep and also selling indexed annuities. This is a great primer, for those interested in annuity regulation. -sjm