Ditch The Suitability Model

We are still marvelling at the breathtaking stance articulated by National Association of Insurance Commissioners President Terri Vaughan regarding the life insurance and annuities model act and regulation.

“I am told agents don’t like it, companies don’t like it and consumer advocates don’t like it,” Vaughan said, while making it plain she would pursue full adoption of the model anyway.

This misguided model has been wending its way like an unfortunate pig through a python’s bowels for the last five years.

Vaughan and other NAIC leaders would do well to consider why this regulation has united factions that are usually at each other’s throats. The fact that they are all dead set against it should not make it automatically worthy of adoption, even in regulators’ eyes.