NAIC Conduct Model For Annuity Sales Agents Moves Forward
December 18, 2019 by Tracey Longo
A new conduct model governing annuity transactions moved closer to reality after winning the approval of a key National Association of Insurance Commissioners’ (NAIC) committee.
The NAIC Life Insurance and Annuities Committee adopted a model that the NAIC says requires agents to make annuity recommendations with their customers’ best interest in mind. That claim has been a subject of controversy, however, with consumer groups and other critics claiming the model does not prescribe a true “best-interest” standard.
In approving the annuity suitability conduct model, the committee kicked certain disclosure provisions back to a working group for further work, albeit with a tight deadline.
The committee is scheduled to meet again via conference call to review and approve the work of the annuity suitability working group and vote the entire model up to NAIC’s Executive Committee and Plenary for consideration at the group’s January conference.
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