News | 01.08.20
State Insurance Commissioners Poised to Approve Annuity Sales Best Interest Rule
A committee of the National Association of Insurance Commissioners (NAIC) has approved a revised suitability in annuity transactions rule that would require insurance sales professionals to act in the best interests of consumers when making recommendations to buy annuities. The model regulation says the insurance salesperson must act “without placing the producer's or the insurer's financial interest ahead of the consumer's interest.” The measure outlines care, disclosure, conflict of interest and documentation requirements that would satisfy the regulation. The rule contains a safe harbor that allows registered representatives of broker-dealers who sell annuities to be in compliance with the NAIC annuity rule if they are in compliance with the SEC's Regulation Best Interest.
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