The Iowa Insurance Division adopted Monday its best-interest standard requiring financial professionals to act in the best interest of clients when selling annuities and will repropose its rule for securities later this summer.
The plan, released by the Iowa Insurance Division, is based on the model regulation approved by the National Association of Insurance Commissioners earlier this year that is harmonized with the Securities and Exchange Commission’s Regulation Best Interest and requires annuity agents and broker-dealers and their reps to act in the best interest of their customers.
The Iowa Insurance Division is a member of the NAIC and North American Securities Administrators Association.
Iowa Insurance Commissioner Doug Ommen, who is also the state’s securities regulator, said Monday that “Iowans expect their financial professional to act in the consumer’s best interest when recommending an annuity. Iowa not only expects it, but we will require it.”
Ommen said he hopes to also work with other U.S. insurance regulators “to require the same of any Iowa insurer writing annuity business in those states.”