State regulators are moving ahead with efforts to strengthen the marketing rules that protect young annuity purchasers.
The Life Insurance and Annuities Committee, an arm of the National Association of Insurance Commissioners, Kansas City, Mo., has voted unanimously to expose an amended version of the Senior Protection in Annuity Transactions model regulation for public comment. The amended version replaces references to “seniors” with the word “consumers.”
The American Council of Life Insurers, Washington, says it will support the change.
The board of the National Association of Insurance and Financial Advisors, Falls Church, Va., voted to support expansion of suitability protections Feb. 21.
North Dakota Insurance Commissioner Jim Poolman, chair of the NAIC’s life committee, says the amended model will be exposed for a 10-day period.
The life committee hopes to approve the amended model March 5 in Orlando, Fla., during the NAIC’s spring meeting.
Once the life committee approves the changes, the NAIC’s executive committee would have to approve the changes before the “plenary,” the body that consists of all voting NAIC members, could weigh in.
The plenary could adopt the amended model during a conference call this spring or at the NAIC’s summer meeting in June, Poolman says.