A new Annuity Suitability Working Group is deciding whether the National Association of Insurance Commissioners should update the NAIC’s Suitability in Annuity Transactions Model Regulation (Model Number 275). The NAIC gave the model its last major update in 2010.
The working group is also supposed to come up with ideas for persuading more states to adopt the 2010 version of the model.
— (Related on ThinkAdvisor: Fixed annuity sales hit record $117.4 billion in 2016)
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The working group met in person for the first time Saturday, in Denver, at a session at the NAIC’s spring meeting. The working group heard presentations from NAIC staff members, consumer groups, insurance company representatives and insurance agent group representatives.
The working group is part of the Life Insurance and Annuities Committee. Members of the committee decided to create the working group in February, during a conference call meeting. Regulators agreed that President Donald Trump’s push to delay implementation of the DOL fiduciary rule makes this a good time to review the NAIC’s annuity suitability model.
James Regalbuto, New York state’s deputy superintendent for life insurance, wants the working group to take a comprehensive approach to dealing with any gaps in financial services sales standards. Regalbuto said state regulators should “fill in what the DOL fiduciary duty rule does not cover,” according to the committee conference call minutes.
The Life Insurance and Annuities Committee included a copy of the minutes in a document packet for the spring meeting.