Regulators near completion of guidance on compliance with annuity rules
October 15, 2025 by John Hilton
More than a year after first circulating a draft guidance on compliance expectations for its best interest standard for annuity sales, regulators are nearing a final version.
The National Association of Insurance Commissioners adopted the Suitability in Annuity Transactions Model Regulation #275 update in 2020 to strengthen state regulation over annuity sales.
The draft guidance provides details for insurers regarding their obligations when they rely on third parties, such as broker-dealers, investment advisers, or ERISA fiduciaries, to comply with the annuity suitability model.
Wink’s Moore on the Market: “The National Association of Insurance Commissioners (NAIC) adopted the Suitability in Annuity Transactions Model Regulation #275 update in 2020 to strengthen state regulation over annuity sales.
The draft guidance provides details for insurers regarding their obligations when they rely on third parties, such as broker-dealers, investment advisers, or ERISA fiduciaries, to comply with the annuity suitability model.”
Um, HELLO! What about marketing organizations?
They DO account for nearly 25% of annuity sales. Oh- and that number? About $115 BILLION per quarter…
A BUNCH of them have in-house suitability officers. These distributors are often doing the first check on annuity suitability.
How can the regulators be so obtuse, not to account for them?!? I must be missing something. -sjm
