NU Online News Service, April 18, 2005, 12:35 p.m. EDT
The Missouri Department of Insurance has proposed requiring insurers to issue suitability statements for the sale of their variable annuities.[@@]
The change would require insurers selling variable annuities in the state to declare in writing the standards of suitability they will apply in determining whether clients should invest in variable annuities, according to Dale Finke, director of the Missouri department.
“These changes will provide a much-needed boost to consumer protection in the state of Missouri,” Finke says in a statement.
The amendment also would require VA carriers to provide “reasonable” supervision of insurance producers who sell variable annuities.
Finke also has proposed a rule under which the department would discipline producers who fail to use suitability measures when making VA recommendations, including suspension or revocation of their licenses.