What You Need to Know
- The Nebraska version of the update takes effect immediately.
- Life insurance producers have until six months after July 1 to get the annuity training course required by the update.
- Ten states have now adopted suitability updates based on the NAIC model.
Nebraska Gov. Pete Ricketts signed an annuity suitability update bill into law on April 7. The bill, Legislative Bill 22, based on the National Association of Insurance Commissioners’ annuity suitability model update.
The update took effect when Ricketts signed the bill.
One section of the new law requires life insurance agents and brokers to get suitability update training. Producers have until six months after July 1 to get the required training.
The NAIC’s suitability update is supposed to fit with the Securities and Exchange Commission’s Regulation Best Interest, or Reg BI. The update requires an annuity seller to act in the best interest of a consumer considering an annuity.
Producers can continue to collect sales commissions.
Nebraska has become the 10th state to adopt a law or regulation based on the NAIC model update. Other states with similar measures in the pipeline include Nevada, Texas and Virginia.