NAIFA-WI is celebrating their most recent legislative win – both chambers of the Wisconsin Legislature passed the National Association of Insurance Commissioners (NAIC) Model Regulation for Annuities.
The Wisconsin Assembly concurred on Senate Bill 644, the annuity best interest model bill, on February 23, 2022, during what is likely its final week of session in the house for the year. The state Senate passed it on January 25.
The legislation passed on voice votes with bipartisan support in both chambers. NAIFA appreciates the work of Senator Rob Stafsholt (R-New Richmond) and Representative Kevin Petersen (R-Waupaca), with tremendous help from the Wisconsin Office of the Commissioner of Insurance, to consult with NAIFA-WI and other stakeholders in drafting the bill and ensuring it conforms with both Wisconsin statutes and the NAIC Model. The bill is likely to be signed by Governor Tony Evers before the end of April.
SB 644 is the second of two National Association of Insurance Commissioners models to pass in Wisconsin this session. The cybersecurity bill passed earlier this session on a bipartisan basis and was signed into law as Act 73.
Brendon DeRouin, President of NAIFA-WI, stated, “We were proud to support the bill as an appropriate standard for sales of annuities, which are complex products that provide lifetime guarantees based on the needs of the consumers. The bill will help ensure consumer protection and uniform regulation among the states. The new, higher best interest standard is well-defined and easily understood under the national model. It requires a knowledge of the client’s and the available products and a reasonable basis to believe a proposed product meets those needs. It also requires good communications and documentation and enhances continuing education requirements.”
DeRouin added, “Thank you to our very active Wisconsin members, as well as Bill McClenahan of Schreiber Government Relations Group, in helping educate Wisconsin lawmakers about the benefits of the proposal and urging them to support it.”
