NAIC

The National Association of Insurance Commissioners (NAIC) recently amended its suitability requirements. The amendment makes insurers responsible for ensuring that all types of annuity sales or transactions are suitable. Industry participants are struggling with the increased administrative complexity. As discussed in a recent article in Investment News: “The big change is that it requires a complete secondary review somewhere in the chain of the distribution line up to the company,...

The National Association of Insurance Commissioners (NAIC) has adopted an amendment that will affect the processes involved in determining the suitability of fixed annuity sales. Much of the supervisory responsibility for fixed annuity suitability will be shifted towards the insurance company . Broker -dealers will likely receive much of their guidelines, materials and recommendations from insurance companies. The result is an increase in compliance burden which will likely have the greatest...

The National Association of Insurance Commissioners (NAIC) has proposed amendments to the regulatory framework that governs annuity sales. The NAIC Suitability in Annuity Transactions Model Regulation is the existing framework. The NAIC is proposing more stringent suitability guidelines for the sale of all types of annuities--including fixed annuities. The amendments would place insurance agents who sell fixed annuities under the same suitability guidelines that apply to financial advisors who...