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January 12, 2021 at 09:57 AM
Iowa’s top insurance regulator says the state will go beyond using the new annuity suitability regulation update developed by the National Association Association of Insurance Commissioners (NAIC).
Doug Ommen, Iowa’s insurance commissioner, says Iowa also will use the drafting notes included in the annuity suitability regulation update model, and a set of answers to frequently asked questions that an NAIC team is drafting.
Use of the FAQ document “will promote greater uniformity across NAIC member jurisdictions,” Ommen writes in Bulletin 21-01.
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Ommen issued the bulletin to help annuity issuers and sellers operating in Iowa start to implement the state’s new annuity best-interest regulations.
Ommen helped lead efforts by the NAIC to revise the NAIC’s Suitability in Annuity Transactions Model Regulation.
The update includes provisions that require annuity issuers and sellers to attempt to act in the best interest of annuity prospects and purchasers. The NAIC tried to create a regulation that would mesh well with the U.S. Securities and Exchange Commission’s Regulation Best Interest.
The NAIC is a Kansas City, Missouri-based group for insurance regulators. States can decide whether or not to adopt its models, and some have trouble attracting takers.
Iowa was the first state to adopt the NAIC’s model rule. Since then, other states, including Arkansas, Arizona, Maine, Nebraska and Rhode Island, have followed suit.
