Regulators, industry execs disagree on indexed-linked regulation details

October 4, 2022 by John Hilton

Inclusion of a “market value adjustment” remains a sticking point as state insurance regulators close in on a new actuarial guideline to fit trendy indexed-linked annuities into variable annuity nonforfeiture rules.

The Index-Linked Variable Annuity Subgroup was created last year by a National Association of Insurance Commissioners task force to focus solely on the index-linked annuity products — known variously as structured, buffered or registered indexed-linked annuities.

While classified as variable annuities, the indexed-linked products do not fit into Model 250, which includes the nonforfeiture rules that determine how much money a contract holder can get back if they give up the annuity.

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Originally Posted at InsuranceNewsNet on September 26, 2022 by John Hilton.