More states are moving toward adopting the National Association of Insurance Commissioners’ revised Suitability in Annuity Transactions model regulation, which aligns with the Securities and Exchange Commission’s Regulation Best Interest.
Arizona and Iowa have already adopted the model rule, while Kentucky, Michigan, Nevada and Ohio are mulling the idea.
Proposed rules have been issued by Arkansas and Rhode Island.
The new model rule, adopted by NAIC in February, incorporates a best interest standard of conduct.
Arkansas held a hearing Thursday to discuss its proposal. No action was taken by the Arkansas Insurance Department as it was a basic informational hearing, Dan Zielinski, spokesman for the Insured Retirement Institute, told ThinkAdvisor in an email.
Similar to Reg BI, Arkansas’ rule “will require insurance producers to act in the best interest of the consumer under the circumstances known at the time a recommendation is made, without placing the producer’s or the insurer’s financial interest ahead of the consumer’s interest,” IRI stated in a comment letter to the Arkansas Insurance Department.
IRI continues to urge all states to adopt the NAIC model, Zielinski said, adding that “we hope to see some of them finalize action before the end of the year.”
— Check out Best Interest Standards, Change and Deferred Annuities on ThinkAdvisor.