The Delaware Department of Insurance has published a final regulation 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.
NAIFA-Delaware worked with our advocacy partners at the American Council of Life Insurers to encourage the state to adopt the NAIC Model. The model increases consumer protections while preserving the ability of insurance and financial advisors to serve Main Street clients. It allows consumers to choose to work with advisors who offer various compensation models. The Model also aligns with the Security and Exchange Commission’s Regulation Best Interest, avoiding potential confusion and contradictions a mishmash of differing state regulations could cause.
The Delaware regulation will go into effect Aug. 1 of this year. Delaware joins Arizona, Arkansas, Iowa, Michigan, and Rhode Island as states that have rules or legislation based on the NAIC Model.
NAIFA Senior Vice President of Government Relation Diane Boyle and ACLI Legislative Director, State Relations Vince Ryan wrote about the new Delaware regulation in ACLI's Impact newsletter.