Fiduciary rule causes insurers to pull back on financial products

September 20, 2016 by Arthur D. Postal

WASHINGTON — State Farm Insurance says it will not be accepting liability under the Best Interest Contract (BIC) on the sale of annuities or mutual funds by the more than 12,000 of its agents throughout the U.S. who have licenses to sell securities.

At the same time, Allstate, USAA and Nationwide, three other insurers with large property casualty divisions whose captive agents also sell investment products, appear to have decided to remain in the commission investment business.

However, in comments to LifeHealthPro, these companies declined to be specific about how they will comply with the new Department of Labor regulation fiduciary standard rule.

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Originally Posted at LifeHealthPro on September 20, 2016 by Arthur D. Postal.