NAIFA's California chapter is holding its annual Legislative Day in Sacramento on March 29. The event will feature visits with lawmakers by NAIFA-CA members, during which they will discuss SB 263, a legislative proposal that in its current form would harm the ability of insurance agents and brokers to serve the public.
SB 263 is simply unworkable and it discriminates against the agency distribution system. SB 263 would subject insurers and producers to an unclear sales standard, as well as add confusing and costly disclosures that do not benefit consumers and are simply a litigation trap.
California has a vibrant life insurance and annuity market. We should encourage opportunities that increase consumer access, rather than overwhelm the process with unworkable standards and additional disclosures that do not, ultimately, benefit the consumer.
NAIFA supports efforts to ensure that financial professionals work in the best interests of consumers. At the national level, NAIFA worked with the Securities and Exchange Commission when it created its Regulation Best Interest. NAIFA has also been a strong advocate for the NAIC’s model for annuities transactions and has been a driving force behind its enactment in 33 states. All NAIFA members agree to abide by a Code of Ethics that requires them to work in their clients’ best interests.
Unfortunately, SB 263 includes requirements and restrictions that would dramatically increase financial professionals’ administrative costs and make it difficult for them to serve their Main Street clients in California. The legislation also includes ambiguous language and extremely broad provisions regarding the creation of consumer profiles.
NAIFA-CA members would like to work with state lawmakers to amend the legislation so that it is more workable for agents and brokers and better serves consumers. The NAIFA-CA Legislative Day will be an important part of that process.