Delaware has become the latest state to introduce a best interest rule for the sale of annuities — joining Arizona, Iowa and Rhode Island.
Introduced by the Delaware Department of Insurance, the proposal aims to align with the SEC’s Regulation Best Interest “to create a harmonized network of state and federal protections that preserve access to information and services lower- and middle-income savers want and need,” explained Delaware Government Relations Committee Chair Joshua Shaver, in a statement.
Delaware’s proposal, released Tuesday by Commissioner Trinidad Navarro, “would give retirement savers peace of mind that the information they receive from financial professionals about an annuity is in their best interest,” said Susan Neely, president & CEO of the American Council of Life Insurers, and Joshua Shaver, Delaware Government Relations Committee Chair for the National Association of Insurance and Financial Advisors.
The plan “safeguards access and continues a national trend toward enhanced, nationwide protections for consumers who are looking for guaranteed lifetime income in retirement,” Neely and Shaver stated.
The Delaware, Iowa, Arizona and Rhode Island measures also closely track the “best interest of consumer enhancements” in the National Association of Insurance Commissioners (NAIC) Suitability in Annuity Transactions Model Regulation.
Arizona’s rule takes effect on Dec. 31 and Iowa’s on Jan. 1.
“We look forward to the rule’s adoption and hope other states will take similar action,” Neely and Shaver said.