The Ohio Department of Insurance has finalized a rule based on the National Association of Insurance Commissioners’ updated Suitability in Annuity Transactions Model that requires financial professionals to work in the best interests of consumers on annuity transactions. The new rule goes into effect in Ohio on Feb. 14.
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Ohio Finalizes Annuities Best Interest Rule Based on the NAIC Model
Topics: State Advocacy Standard of Care & Consumer Protection Grassroots Annuity Best Interest Insurance & Financial Advisor Regulation Ohio
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NAIFA Backs Ohio’s Suitability in Annuity Trans-actions Proposal Albeit Minor Edits
Ohio’s Department of Insurance recently proposed updates to its “3901-6-13 Suitability Annuity Transactions” rule. The state’s Director of Insurance, Jillian Froment, chaired the National Association of Insurance Commissioner’s Annuity Suitability Working Group while the working group crafted revisions to the NAIC’s “Suitability In Annuity Transactions Model Regulation (#275).” As expected, the Ohio proposal is similar to the model. It establishes a new standard of conduct that goes beyond the rule’s current suitability standard, but it is not a fiduciary standard.
