Legislation signed into law today by Nebraska Governor Pete Ricketts provides citizens throughout the Cornhusker state with enhanced consumer protections when buying annuities. Strongly supported by Nebraska Director of Insurance Bruce Ramge and championed in the Nebraska Legislature by State Senator Matt Williams, the new law closely tracks the ‘best interest of consumer enhancements’ in the National Association of Insurance Commissioners (NAIC) Suitability in Annuity Transactions Model Regulation. It also aligns with the SEC’s Regulation Best Interest.
These measures offer strong state and federal protections and, unlike a fiduciary-only approach that limits choices for consumers, make sure savers, particularly financially vulnerable middle-income Americans, are not discriminated against and have information about options for long-term security through retirement.
"Nebraska’s new law continues a drive by policymakers and elected leaders across the country to enhance protections for consumers seeking lifetime income in retirement,” said American Council of Life Insurers (ACLI) President and CEO Susan Neely. “At the same time, these new standards safeguard lower and middle-income families’ access to important information they need for a secure retirement. We hope more states take similar actions, so all consumers are protected no matter where they live.”
“Running out of money is one of consumers’ biggest retirement fears,” said Nebraska Insurance Federation Executive Director Robert M. Bell. “As the only financial product that guarantees lifetime income, annuities can help alleviate this anxiety. Thanks to Senator Williams, Governor Ricketts and the Nebraska Legislature, Nebraskans planning for a secure retirement will have access to important information about annuities to
help them make informed decisions.”
“Now more than ever, consumers need to have access to the peace of mind that comes from guaranteed lifetime income,” said NAIFA-Nebraska President Mike Hutchinson. “Life insurance companies and agents strongly support this new law because it provides Nebraskans planning for retirement confidence that financial professionals they work with are acting in the best interest of the consumer.”
Nebraska joins nine other states, that have adopted similar laws and regulations. Several other states are considering similar actions.