The Alliance is actively engaged in an all-industry Annuity Suitability Coalition to improve the NAIC’s Suitability in Annuity Transactions Model Regulation.
While not a fraternal-specific issue, the state legislation that will be based on the NAIC Model Act, along with the state versions of the measure currently being considered (some of which, like that in Maryland, are onerous and expand the provisions to also include life insurance), will have a profound impact on member Alliance members. All of this is playing out in the shadow of the SEC “Best Interests” standards that is expected to be issued in September.
The issue has been covered extensively in the insurance trade media, and the Alliance has included links to many stories on the topic in recent issues of Weekly Headlines. The discombobulated approach to enacting uniform standards threatens to result in a crazy quilt regulatory structure with differences – some subtle and some significant – that would create compliance headaches and liability exposure to both insurers and field representatives, without adding one iota of additional protection for consumers.
The comments from Interested Parties received by the NAIC have been posted here and here. Alliance members should note that the Alliance did not sign-on to the all-industry coalition comment letter because we felt that the ACLI comment letter more accurately reflected the concerns of fraternal life insurers.