NAIFA Is the Driving Force Behind Adoption of the NAIC Best Interest Annuity Model
NAIFA, working with our advocacy partners at the American Council of Life Insurers, has been the driving force behind the adoption of the NAIC model for annuity transactions by states across the country. NAIFA grassroots advocates worked with legislators and regulators to get the measures enacted.
These best-interest rules are a win-win for advisors and consumers because NAIFA worked with the SEC and NAIC to ensure Reg BI and the NAIC model provide meaningful consumer protections but do not unduly interfere with how advisors do business.
So far, 45 states have adopted the model.
Why Is the NAIC Model Important?
- The NAIC model requires advisors to work in the best interests of their clients, boosting consumer confidence in annuity products and the insurance and financial services industry.
- The NAIC model rejected some harsh proposals that would have made it impossible for many advisors to serve Main Street clients.
- If you are licensed in multiple states, the fact that NAIFA has worked to have the model adopted in 40 states means advisors don’t have to deal with a mishmash of confusing and possibly conflicting regulations around the country.
- The NAIC model is in agreement with the SEC’s Regulation Best Interest.
Grassroots work by NAIFA members has been indispensable in getting states to adopt the model. NAIFA state chapter leaders are featured in joint press releases with ACLI and blog posts.
