NAIFA has strong advocacy relationships with interstate organizations like the National Association of Insurance Commissioners (NAIC), National Council of Insurance Legislators (NCOIL), and North American Securities Administrators Association (NASAA). We attend their meetings, provide input through comments and testimony, and work with them on resolutions and model regulations that impact consumers and the insurance and financial services industry.
“We fundamentally disagree with the White House’s characterization of state consumer protections for annuity products. The White House press statement that oversight of these products ‘varies state by state’ and provides ‘inadequate protections and misaligned incentives’ suggests either ignorance of, or willful disregard for, the hard work of the 43 states and counting that have worked diligently to enhance protections for consumers by adopting the NAIC’s Suitability in Annuity Transactions Model Regulation.”
NAIFA has been a strong supporter of the NAIC's annuities transactions model, which requires advisors to work in the best interests of the consumers they serve, and NAIFA grassroots advocates have helped get the model adopted in 43 states. Like the Securities and Exchange Commission's Regulation Best Interest (Reg BI), the NAIC model provides strong consumer protections without unduly impeding financial professionals in their efforts to serve middle- and low-income investors.
The combined effectiveness of the Reg BI on a national scale and the NAIC model in the 43 (and counting) states that have adopted it make further action by the DOL unnecessary. Furthermore, as NAIFA CEO Kevin Mayeux stated, the DOL's FAQ on its proposed rule "referring to legitimate compensation many advisors receive for their work as 'junk fees' is insulting and unfair."
NAIFA appreciates the NAIC's support for strong consumer protections that safeguard the work of ethical agents and advisors, like NAIFA members, who are vital to their clients' financial well-being.