Please Harmonize With SEC Reg BI: Insurance Groups to NAIC
February 19, 2019 by Melanie Waddell
Life insurance and annuity trade groups are urging the National Association of Insurance Commissioners to “strive for consistency” with the Securities and Exchange Commission’s Regulation Best Interest as the NAIC pushes ahead to revise its Suitability in Annuity Transactions Model Regulation.
The comment period for a draft of a proposed NAIC model rule revision expired Friday. The NAIC’s current annuity suitability model regulation is the basis for regulations currently in effect in 49 U.S. jurisdictions.
The NAIC is a group for insurance regulators in all 50 states, the District of Columbia and U.S. territories. The group develops model laws and regulations, and the member jurisdictions decide whether to adopt the models.
The Insured Retirement Institute, along with the American Council of Life Insurers (ACLI), the National Association of Insurance and Financial Advisors (NAIFA) and the Association for Advanced Life Underwriting (AALU), submitted comments on the NAIC model rule, stating that they support adoption of a “best interest” standard.
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