Defined terms for the annuity market and lifetime income landscape.
A registered index-linked annuity (RILA) is a deferred annuity in which the crediting rate is linked to a market index, with the contract owner retaining a defined portion of downside risk through a buffer or floor and the insurer setting caps, participation rates, and other upside parameters.
A registered investment advisor is a person or firm registered under the Investment Advisers Act of 1940, either with the Securities and Exchange Commission or with a state securities regulator, to provide advice about securities for compensation subject to a fiduciary duty to clients.
Regret aversion is the tendency for individuals to weigh the anticipated cost of regret from a decision that turns out badly more heavily than a straightforward expected-outcome analysis would predict, producing choices that reduce the risk of regret even at the cost of expected value.
Regulation Best Interest is an SEC rule adopted in 2019, effective June 30, 2020, that establishes a standard of conduct for broker-dealers when making a securities recommendation to a retail customer, requiring the broker-dealer to act in the retail customer's best interest.
Rehabilitation of insurance companies is the state regulatory process under which the domiciliary state's insurance commissioner takes control of a financially impaired carrier and attempts to restore it to solvency, as an alternative to liquidation.
