NAIC Proposes More Stringent Rules for Annuity Sales

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...

Sheryl Moore on Fixed Indexed Annuities and the SEC Proposed Rule 151A

The Securities and Exchange Commission’s (SEC) proposed Rule 151A would change the securities status of indexed annuities from fixed insurance products to registered, securities products.

The proposed rule would have a significant impact on their entire industry landscape.  SEC 151A would affect the way in which insurance companies develop...


J.G. Wentworth Files for Bankruptcy - Life Settlements Market in Flux

A major player in the life settlement market has filed for Chapter 11 bankruptcy protection. On Monday, J.G. Wentworth and two of its affiliates filed for bankruptcy protection in a Delaware court. J.G. Wentworth had been very active in the life settlement market. The financial crisis has deeply impacted all securitization markets, and the life insurance market is no different. Life insurance policyholders who have already sold their life or annuity policies and received funds should be fine...