Hawkeye State insurance regulators are working with insurers and insurance trade groups to find a better way to help consumers understand the fixed annuities and indexed annuities they are buying.
The Iowa Insurance Division has joined with the American Council of Life Insurers, Washington, to promote use of an annuity disclosure template developed by the ACLI and the Association for Insured Retirement Solutions, Reston, Va.
Participating insurers will use the standard disclosure document for 1 year, for fixed annuities and indexed annuities but not for variable annuities, to see how well consumers like the document and how well they understand the disclosures, officials say.
The ACLI and the AIRS developed the standard document to help implement the annuity disclosure model regulation developed by the National Association of Insurance Commissioners, Kansas City, Mo.
The pilot disclosure program started Jan. 31, but officials note that some insurers will not be able to use the standard disclosure document until they convert their computer systems to handle it.
Other state insurance departments say they might join the initiative, Iowa officials report.