The NAIC recently adopted amendments to its Suitability in Annuity Transactions Model Regulation, which regulates producer and insurer recommendations for all annuities. The revised NAIC Model requires producers and insurers to act in the best interest of annuity purchasers and to not put their own financial interests ahead of the consumers’ interest. The amended Model, which aligns well with the SEC’s Regulation Best Interest, will raise the standard of care required of financial professionals while preserving consumers’ access to valuable financial advice, services and products. NAIFA was an active participant in the development of these revisions and supports the amended Model regulation. The adoption by the states of these amendments is a top advocacy priority for NAIFA.
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NAIC Adopts Enhanced Standard of Care for Annuities
Topics: Standard of Care & Consumer Protection Interstate Advocacy Annuity Best Interest Insurance & Financial Advisor Regulation
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New York Issues Emergency Regulations Requiring Insurer and Producer Notifications to Clients
The New York State Department of Financial Services (DFS) recently issued emergency regulations describing the notifications that insurers and agents must provide to their policyholders regarding the flexibility being given regarding premium payments, policy lapse and renewal and other topics. The new regulations—11 NYCRR 229.5(b) and 3 NYCRR 405.6(b)(4).
>View the Regulations
Topics: State Advocacy Standard of Care & Consumer Protection New York Grassroots
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SEC Considering Delaying Reg BI Implementation
In light of the disruptions to normal business operations brought about by efforts to curtail the spread of the Coronavirus, the U.S. Securities and Exchange Commission (SEC) is considering a possible delay in the June 30, 2020 implementation/effective date for compliance with the Commission’s new Regulation Best Interest, which establishes a heightened “best interest” standard of care for broker-dealers and their registered representatives. (In a related matter, the SEC has changed the deadline for BD firms to file their Forms ADV from March 30, 2020 to June 30, 2020.) Although no final decision has been made, the topic has been discussed by SEC leadership. NAIFA has submitted a letter to the SEC requesting a reasonable delay in the Reg BI implementation/effective date, which you can review here.
Topics: Standard of Care & Consumer Protection SEC Federal Advocacy Insurance & Financial Advisor Regulation Regulation Best Interest
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State Advocacy: NAIFA Promotes Iowa and Arizona Annuity Sales Standards
Iowa and Arizona are the first states to introduce measures that would implement a model standard of care for annuity sales developed by the National Association of Insurance Commissioners (NAIC). NAIFA chapters in both states successfully advocated for the NAIC model.
Topics: Life Insurance & Annuities Standard of Care & Consumer Protection Arizona Iowa Insurance & Financial Advisor Regulation
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Massachusetts Adopts Final Fiduciary Duty Rule Financial Professionals
Topics: State Advocacy Standard of Care & Consumer Protection Insurance & Financial Advisor Regulation Massachusetts Fiduciary
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NAIFA-New Jersey Promotes Law To Protect Seniors From Financial Exploitation
Topics: State Advocacy Standard of Care & Consumer Protection New Jersey Insurance & Financial Advisor Regulation Senior Financial Protection
Gov. Baker Expresses Concern About Massachusetts Fiduciary Proposal
Topics: State Advocacy Standard of Care & Consumer Protection Insurance & Financial Advisor Regulation Massachusetts Fiduciary
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NAIFA's Mayeux To Testify On Massachusetts Fiduciary Proposal
NAIFA CEO Kevin Mayeux is set to testify tomorrow before the Massachusetts Securities Division concerning the state’s proposed fiduciary duty for insurance and financial professionals (i.e., proposed amendments to 950 CMR 12.200). He will testify on behalf of NAIFA’s national organization and the NAIFA-Massachusetts state chapter.
