NAIFA Supports NAIC’S New Annuity Rule
Senior Counsel, Government Relations
FALLS CHURCH, VA (April 21, 2010) — The National Association of Insurance and Financial Advisors (NAIFA) today voted to support the newly revised NAIC Suitability in Annuity Transactions Model Regulation. The revised Model is intended to strengthen the previous NAIC Model Regulation to better protect consumers from inappropriate and unsuitable annuity marketing practices.
“Over the last several years NAIFA has worked with consumers, regulators and industry representatives to develop these stronger standards which will provide better protection for consumers buying annuities,” said NAIFA President Thomas D. Currey, CLU, ChFC, LUTCF. “NAIFA will work closely with its state affiliates to implement these enhanced protections.”
Annuities have been and will continue to be an important planning tool for retirement, and producers, insurers and regulators must be vigilant that these products are appropriate for consumers. It is also imperative that producers who market these important products have a thorough understanding of their features and how they can meet the needs of clients.
Major enhancements to the Model Regulation:
- Clarify that the insurer is responsible for compliance with the Model’s requirements, even if the insurer contracts with a third party;
- Require the review of all annuity transactions; and
- Establish both general and product-specific training requirements for producers.
About NAIFA: NAIFA comprises more than 700 state and local associations representing the interests of approximately 200,000 agents and their associates nationwide. NAIFA members focus their practices on one or more of the following: life insurance and annuities, health insurance and employee benefits, multiline, and financial advising and investments. The Association’s mission is to advocate for a positive legislative and regulatory environment, enhance business and professional skills, and promote the ethical conduct of its members.