NU Online News Service, July 21, 2003, 5:39 p.m. EDT – The Life & Annuities “A” committee of the National Association of Insurance Commissioners, Kansas City, Mo., has voted 6-1 to adopt the Senior Protection in Annuity Transactions model regulation.
The committee barely attained the quorum needed to vote on the model, which would serve as a guide for state insurance regulators’ efforts to regulate the sale of annuities to senior citizens.
The model must still be adopted by the NAIC’s executive committee and the full NAIC membership before the NAIC can recommend it.
The effort that has produced the latest proposed suitability model has lasted for four years and generated many drafts.
The draft that advanced incorporates changes in scope that were recommended by the American Council of Life Insurers, Washington.
The draft also incorporates changes recommended by the Wisconsin Insurance Department and North Dakota Commissioner Jim Poolman.
The current draft includes variable annuities under its purview, and it holds both insurers and producers responsible for the suitable sale of annuities.