State insurance regulators are preparing to discuss a proposal for adding a best interest standard to their own annuity sales standards model.
Earlier this year, the National Association of Insurance Commissioners set up an Annuity Suitability Working Group to look at the NAIC’s Suitability in Annuity Transactions Model Regulation (Model Number 275).
The working group plans to look at a draft model revision that includes best interest provisions on Sunday, during a session at the upcoming NAIC fall national meeting in Honolulu.
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The session agenda lists Dean Cameron, the Idaho insurance director, as the author of the draft.
The NAIC is a group for state insurance regulators. It has no direct ability to change state laws or regulations, but states often start with NAIC models when developing their own insurance proposals.
The Annuity Suitability Working Group is part of the NAIC’s Life Insurance and Annuities Committee. Committee members decided to form the working group in February, during a conference call meet, in response to efforts by President Donald Trump to delay implementation of the U.S. Department of Labor (DOL), and, possibly, to change the rule and related regulations.