Minnesota is the latest state to adopt a version of the NAIC’s 2010 Suitability in Annuity Transaction Model law. By this month, all states must enact into law a version of that legislation that either meets or exceeds the NAIC requirements if they are to retain oversight of annuity sales.
In Minnesota, the bill – HF 791 – passed the House of Representative by a vote by 127 to 7 in April and the Senate by a roll call of 55-8 in May.
According to a spokesperson for the Minnesota Department of Commerce, annuity suitability provisions were previously covered under two separate statues: one governing producers and the other defining unfair claims practices law.
The spokesperson noted in an email that the current legislation includes more precise standards, supervision and review for the evaluation of unsuitable products before the point of sale to the consumer. It’s a modified version of the NAIC model, the spokesperson added.