NAIC Ready To Release A New Suitability Model
A new working draft to address the suitable sale of products is ready for public exposure and comment, says Utah Insurance Commissioner Merwin Stewart, who is spearheading the effort for the National Association of Insurance Commissioners.
The new draft, which will be released in the next few days, according to Stewart, is a model act and model regulation that focuses on suitability of sales to senior citizens who are “more vulnerable” to unsuitable sales.
The decision that the draft was ready for release was made during a regulators call on Feb. 20. The new model takes a more narrow approach than the broader approach taken in the development of a previous model developed by the NAIC.
That version of the suitability model, the Life Insurance and Annuities Suitability model act and regulation, was opposed by insurers, producers, consumer advocates and some regulators. Consequently, regulators at the NAIC began work on a new document.