The National Conference of Insurance Legislators says annuity suitability protections should apply to all consumers, not simply to those ages 65 and older.
Members of NCOIL, Troy, N.Y., have adopted an annuity suitability resolution that expresses support for recent efforts by the National Association of Insurance Commissioners, Kansas City, Mo., to expand the scope of annuity consumer protection rules.
The NCOIL resolution encourages states to adopt the NAIC’s new Suitability in Annuity Transactions model regulation.
In other NCOIL news:
- Life settlements: NCOIL will be reviewing its Life Settlements model act. NCOIL could end up amending the model, replacing it or supporting an NAIC model, according to Candace Thorson, NCOIL’s deputy executive director.
- Market conduct: The NCOIL executive committee has adopted a final version of the Market Conduct Surveillance model law. The model asserts that the state insurance commissioner has authority over market conduct matters, but it limits commissioners to conducting comprehensive exams of a company once every 3 years.
Targeted exams should have a work plan and a proposed budget, and regulators should limit the cost of targeted exams by making as much use as possible of desk exams and data requests, according to the model.