What You Need to Know
- Maryland has published the regulatory update in the Maryland Register.
- NAIFA has predicted that Wisconsin Gov. Tony Evers will sign that state's bill soon.
- Hawaii also has a suitability update bill in the pipeline.
The Maryland Insurance Administration has completed adoption of the annuity sales standards developed by the National Association of Insurance Commissioners.
Maryland’s insurance regulators published their version of the annuity suitability rules update Friday in an official state regulatory gazette, the Maryland Register.
The NAIC intended its update to be compatible with the Securities and Exchange Commission’s Regulation Best Interest.
The earlier suitability rule required annuity sellers to verify that an annuity sold to a consumer suited the consumer’s needs.
The update requires annuity sellers to act in the best interest of the consumer but appears to allow an agent or broker to earn commissions or other compensation tied to sales volume from selling annuities.
Maryland and New Mexico recently adopted similar suitability rule updates.