Arizona jumped out front of the pack with the introduction of Senate Bill No. 1557, titled "Annuity Transactions; Requirements," which would amend Arizona's suitability requirements for annuity transactions. Senate Bill No....more
Since mid-2018, the NAIC’s Innovation and Technology (EX) Task Force (Innovation TF) has been considering how state anti-rebating laws impede insurers and producers’ ability to offer innovative products and services to...more
Like a game of whack-a-mole, new or existing NAIC groups are being tasked to consider the various regulatory issues that are popping up from insurance innovation....more
10/11/2019
/ Annuities ,
Artificial Intelligence ,
Best Practices ,
Big Data ,
Consumer Insurance Products ,
Consumer Privacy Rights ,
Financial Services Industry ,
Insurance Regulations ,
Life Insurance ,
NAIC ,
Regulatory Requirements ,
Regulatory Standards ,
Sandbox ,
Underwriting
The NAIC Annuity Disclosure (A) Working Group (Disclosure WG) and the NAIC IUL Illustration (A) Subgroup (IUL SG) continue to untangle the web of issues applicable to fixed index annuity and index universal life (IUL)...more
The NAIC and states are reviewing whether to flush those provisions of state anti-rebating laws that inhibit innovation in the insurance industry. The NAIC Unfair Trade Practices Act (#880) prohibits offering any premium...more
10/9/2019
/ Ancillary Agreements ,
Annuities ,
Consumer Insurance Products ,
Draft Guidance ,
Insurance Regulations ,
Legislative Agendas ,
Life Insurance ,
NAIC ,
Non-Discrimination Rules ,
Policy Terms ,
Proposed Legislation ,
Rebates ,
Regulatory Requirements ,
Risk Mitigation ,
State and Local Government ,
Unfair Trade Practices Act ,
Value-Added Services
The NAIC Annuity Suitability Working Group (Suitability WG) spent the summer at the July 23, July 29, and August 3 Suitability WG meetings trying to get out of the parking lot and discussed several issues to frame up the...more
8/12/2019
/ Annuities ,
Best Interest Standard ,
Conflicts of Interest ,
Consumer Insurance Products ,
Financial Services Industry ,
Incentive Compensation ,
Life Insurance ,
NAIC ,
Non-Cash Compensation ,
Regulatory Agenda ,
Regulatory Oversight ,
Regulatory Requirements ,
Working Groups
On June 5, 2019, the SEC adopted a four-part regulatory package that includes: new Regulation Best Interest (Reg. BI), the related “Relationship Summary” disclosure form (Form CRS), and two interpretations of the Advisers...more
7/12/2019
/ Best Interest Standard ,
Broker-Dealer ,
Consumer Insurance Products ,
Disclosure Requirements ,
Duty of Care ,
Duty of Loyalty ,
Fiduciary Duty ,
Form CRS ,
Investment Adviser ,
Investment Management ,
Life Insurance ,
New Rules ,
Regulation Best Interest ,
Regulation BI ,
Retail Investors ,
Securities and Exchange Commission (SEC) ,
Securities Regulation ,
Securities Transactions ,
Standard of Conduct
States continue to puzzle together the duty of care financial professionals owe, or disclosures financial professionals make, to consumers. Ideally, states would ensure that the pieces fit together. However, as reflected in...more
At the NAIC Fall 2018 National Meeting, various groups within the NAIC discussed a cornucopia of topics that impact the life and annuity industry. ...more
At recent meetings, the NAIC's Big Data (EX) Working Group (Big Data WG) has shifted its gaze to the use of big data in life insurance underwriting. Before these meetings, the Big Data WG had focused on the impact of big data...more
On May 31 and June 1, several teams competed over proposed revisions to the Suitability in Annuity Transactions Model Regulation (#275) (Suitability Model) at the in-person meeting of the National Association of Insurance...more
On April 27, New York's Department of Financial Services (NY DFS) issued its updated proposed First Amendment (Updated First Amendment) to New York's Suitability in Annuity Transactions, 11 NYCR 224 (the Annuity Suitability...more