A high-level panel at the National Association of Insurance Commissioners has approved a proposal that could require annuity sellers to review the financial needs of young annuity purchasers.
The NAIC’s Life Insurance and Annuities Committee voted here at the NAIC’s spring meeting to approve a proposal to change the Senior Protections in Annuity Transactions model regulation.
The amended model would require annuity sellers to check all prospective buyers’ finances to see whether proposed annuity purchases seem to be suitable for those buyers.
The current version of the model requires suitability reviews only for prospective buyers age 65 and older.
The NAIC’s executive committee and a body that represents all voting members of the NAIC, Kansas City, Mo., still must approve the proposed model change before it can take effect.