The Insurance Marketplace Standards Association is setting up a clearinghouse program that will help life insurers keep tabs on outside annuity distributors.
IMSA, Bethesda, Md., says the new certification program will give life insurers the information they need to make sure third-party annuity distributors meet suitability compliance standards.
The clearinghouse is scheduled to go live Jan. 1, 2008.
The clearinghouse program will establish “an ownership and responsibility for everyone along the distribution channel” to ensure suitability, says IMSA Chief Executive Brian Atchinson.
The clearinghouse is an IMSA response to the Suitability in Annuity Transactions model regulation developed by the National Association of Insurance Commissioners, Kansas City, Mo.
Legislatures and regulators have adopted the model in 30 states, according to IMSA.