02.29.24

California Governor Signs Annuity Best Interest Sales Rule Bill

by: Allison Bell

California Gov. Gavin Newsom has signed state legislation adopting the National Association of Insurance Commissioners’ (NAIC) annuity sales standard update. The model update requires sellers of annuities to act in the consumer’s best interest and disclose potential conflicts of interest, but it does not require the seller to act as a fiduciary or to move away from collecting sales commissions. The list of states without adoption of the NAIC update or a stricter standard has now shrunk to Indiana, Louisiana, Missouri , Nevada, New Jersey and the District of Columbia.

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