Commissioners Challenge The Industry On Suitability
Insurance commissioners formally unveiled their latest version of suitability guidelines and bluntly challenged the industry to work on an effort they said will be put in place.
Charging that the industrys goal has been to “Delay, delay, delay; kill, kill, kill,” North Dakota Commissioner Jim Poolman challenged the industry to take action on getting consensus and working to adopt the Senior Protection in Annuity Transactions Model regulation and act.
The National Association of Insurance Commissioners gets criticized for not taking action fast enough, Poolman said during the spring meeting here. In fact, he says, some insurance people refer to the NAIC as “No Action Is Contemplated.”
Countering this quip, Poolman said the newest effort to create suitability standards has been narrowed in scope to focus on those consumers 65 and over. “Come up with a solution rather than just killing it,” he said.
“What we really would appreciate is for you, in a sincere effort, to help us approve a model with the objective that we seek,” said Merwin Stewart, Utah insurance commissioner and chair of the Life & Annuities “A” Committee.