A vote on a model law and regulation addressing the suitability of sales was put off by regulators who heard one last volley of opposition during the summer meeting here of the National Association of Insurance Commissioners.
The opposition of insurers, producers and others was reiterated during the Life “A” Committee session on the Life Insurance and Annuities Suitability model act. While parties restated the views they had expounded during the two-plus years the model was under development, commissioners weighed in with questions on the controversial issue.
North Dakota Commissioner Jim Poolman asked if part of the problem with replacements and suitability was the upfront compensation structure for producers. “This is stuck in my craw and my departments craw. Is the new push for a suitability model driven by a compensation system that drives to sell, to close the deal?”