NAIFA's GovTalk

Forty-Five States Adopt the National Association of Insurance Commissioners Model for Suitability in Annuity Transactions

Written by NAIFA | 3/15/24 5:50 PM

As of March 2024, 90% of states have adopted the NAIC Best Interest Model. Vermont, New Hampshire, California, and Indiana are the most recent states to align in uniformity with other states who enacted the NAIC Model. This milestone was achieved as the Department of Labor (DOL) chose to advance its proposed and revived fiduciary-only proposal, “Retirement Security Rule,” for review by the White House Office of Management and Budget (OMB). Unlike this proposal, the best interest standard adopted in 45 states, ensures that all savers, particularly financially vulnerable middle-income Americans, can access information about different choices for long-term security in retirement.

Currently, there is strong activity in 3 states – Missouri, Nevada, and Louisiana, as well as the District of Columbia. Together with the Securities and Exchange Commission’s Regulation Best Interest, which creates a best interest standard for retirement investors in every state, the NAIC model offers robust protections and promotes retirement security for American families. NAIFA’s efforts, including grassroots work by our members, were instrumental in assuring that financial professionals work in consumers’ best interests. NAIFA looks forward to continuing the work with state chapters and joint trades to move toward a full-50 state adoption.

 

 NAIFA Staff Contact: Bianca Alonso Weiss - State Government Relations Manager at bweiss@naifa.org.