Model regulation governing the suitability of life insurance and annuity sales advanced toward full adoption at the spring meeting here of the National Association of Insurance Commissioners.
The one area of agreement among companies, producers and consumer advocates is that they dont like the life insurance and annuities suitability model act and accompanying model regulation, interviews with National Underwriter suggest. As one person put it, “This thing needs to die.”
Before the vote to expose the model for three months before it is voted on at the NAIC meeting in June, NAIC President Terri Vaughan acknowledged the widespread dislike, but said she believed suitability regulation is needed and will be realized by NAIC.
Besides Vaughan, Nat Shapo, Secretary-Treasurer and Illinois insurance commissioner, and Lee Covington, Ohio insurance commissioner, called for strong support for the model.
Carroll Fisher, Oklahoma commissioner, in a strongly worded opposition, said he would continue to oppose the model and lobby to defeat it.
“I am told agents dont like it, companies dont like it and consumer advocates dont like it,” Vaughan said. It is likely that “A” committee will be lobbied to reject it, she added.