02.14.20
State Regulators Approve Best-Interest Standard for Annuity Sales
by: Mark, Jr. Schoeff
The National Association of Insurance Commissioners on Thursday approved a model regulation that would require insurance professionals to act in the best interests of their customers when selling annuities. According to a draft of the rule from late December, an insurance salesperson would have to “identify and avoid or reasonably manage and disclose material conflicts of interest” and would have to maintain a written record explaining the basis for the recommendation. The rule includes 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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