This One Weird Word Could Blow Up Your Sales Standard: NAFA to NAIC
February 26, 2019 by Allison Bell
The general counsel of the National Association for Fixed Annuities has some advice for state insurance regulators: Keep the word “prudence” out of any new standards for sellers of annuities,
Pamela Heinrich, NAFA’s top legal officer, included that thought in a letter commenting on efforts by the National Association of Insurance Commissioners (NAIC) to update the NAIC’s annuity suitability model regulation.
The Annuity Suitability Working Group, part of the NAIC’s Life Insurance and Annuities Committee, has posted a total of 18 letters commenting on a new suitability update draft on the working group’s section of the NAIC’s website.
The NAIC is a group for state insurance regulators. States often use NAIC models when developing their own insurance laws, regulations and consumer education materials.
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