2018 0718 - InvestmentNews.com - State insurance commissioners don't include life products in their annuity suitability reform, by Mark Schoeff Jr. - [link]
“We see no rationale for applying a best-interest standard or ‘suitability-plus’ standard of care to a fixed-indexed annuity transaction but not to an indexed universal life insurance transaction, or for applying a best-interest standard of care to a variable annuity transaction but not to a variable life insurance transaction,” the Center for Economic Justice wrote in a June 20 comment letter to NAIC.
NAIC - “That is outside the scope of our annuity suitability rule,” said Iowa insurance commissioner Doug Ommen, vice chairman of the NAIC annuity suitability working group. “I expect that we will have further discussion about that issue.”
Industry - The life insurance industry also is resisting expanding the NAIC rule to life insurance.
ACLI - “Including life insurance in the model regulation is unnecessary because life insurance sales practices are already subject to comprehensive state laws and regulations which assure that life insurance products are sold consistent with the best interest of consumers,” J. Bruce Ferguson, senior vice president for state regulation at the American Council of Life Insurers, wrote in a May 29 comment letter. - <WishList>