Alabama, Maine, and Virginia have joined 12 other states in adopting consumer-protection regulations or legislation based on the National Association of Insurance Commissioners’ (NAIC’s) Suitability in Annuity Transactions Model. The NAIC model requires financial professionals to work in the best interests of their clients during annuities transactions and aligns with the federal Securities and Exchange Commission’s Regulation Best Interest. It also preserves the ability of consumers to work with agents and advisors offering a variety of successful business models and avoids restrictions that would likely make it impossible for financial professionals to work with Main Street investors and retirement savers.
NAIFA strongly encourages every state to adopt the NAIC model. Members and leaders in NAIFA state chapters, working with advocacy partners including the American Council of Life Insurers (ACLI), have been instrumental in promoting passage of the laws and regulations.
“We set a goal of having a dozen states pass laws or regulations based on the NAIC model during the first half of this year,” said NAIFA Senior Vice President for Government Relations Diane Boyle. “Six months in, we’re up to 15 states enhancing consumer protections without placing undue barriers between insurance and financial advisors and their clients. It’s a testament to the strength of NAIFA’s state advocacy, the hard work of our members, and our partnership with ACLI and other coalition members, as well as the good work done by the NAIC in creating the annuity transactions model. This remains a top advocacy priority for NAIFA state chapters, and we expect additional states to follow suit.”
For more information, read the article in ACLI’s Impact blog by Curt Leonard, ACLI’s Regional Vice President for State Relations, and Sallie Bryant, Chair of the NAIFA-AL Government Relations Committee. Also available are news releases by ACLI President and CEO Susan Neely and NAIFA-Maine President Terri Wright and Neely and NAIFA-VA President Susan Campbell.