State Regulators Push Annuity Sales Standards Project One Step Forward
August 5, 2019 by Allison Bell
The Annuity Suitability Working Group today decided to pass its proposed update of the National Association of Insurance Commissioners’ annuity suitability model regulation on to other teams at the NAIC.
The working group plans to post a new draft revision of the Suitability in Annuity Transactions Model Regulation (Number 275) in September, seek public comments, then push the results into the rest of the NAIC’s model review pipeline.
The working group has been trying to add a “best interest” provision to the model. The new standard would require sellers of annuities to recommend the best annuities for the clients, not simply annuities that appear to suit the clients’ needs.
The NAIC is a group for insurance regulators. It may not end up adopting the proposed model revision.
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