Annuity suitability law: Coming to your state soon

In 2010, the NAIC enacted the Suitability in Annuity Transaction Model Regulation to promote consumer understanding and help address complexities and improper sales practices in the annuity transaction process. The regulation requires insurers to establish a system to supervise recommendations and to set forth standards and procedures for recommendations to consumers that result in transactions … Continue reading

NAIC Clarifies Its Role

Rep. Ed Royce, R-Calif. (AP Photo/Charles Dharapak) The National Association of Insurance Commissioners (NAIC) is acknowledging in a letter to a member of Congress that it is not a “regulatory body,” nor a “standard-setter,”  but acts to provide a “forum and vehicle” for its members, who are standard-setters. The NAIC’s lengthy response was at the … Continue reading

Annuity Illustrations Under Fire

[Regulators Target Wild Assumptions’ with New Rules] S TATE REGULATORS are close to adopting rules that would clamp down on illustrations that companies and producers offer with fixed annuities—illustrations that critics have called unrealistic and inconsistent. The regulation would require that all fixed annuity illustrations meet certain standards to represent all costs and product information … Continue reading