Connecticut has become the 16th state to adopt 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-CT worked with coalition partners, including the American Council of Life Insurers (ACLI), to encourage the state Insurance Department to adopt the regulation. NAIFA advocacy earlier this year surpassed its goal of having 12 states adopt the NAIC model by the end of June and now strongly encourages every state to follow suit. Members and leaders in NAIFA state chapters, working with ACLI and other advocacy partners, have been instrumental in promoting passage of the laws and regulations.
[Note: A previous version of this post misidentified Vermont as the 16th state to adopt the NAIC model. We regret the error.]