Submitted by tom on
An interesting article from Darla Mercado of Investment News discusses the NAIC's annuity suitability model law.
The model--which requires additional hours of annuity-related continuuing education and related exams--has been adopted by nine states thus far.
As discussed in the article, one of the effects of the NAIC model is additional time and related hurdles (e.g. exams) for financial advisors interested in selling annuity products.
With the law, the burden of responsibility is ultimately with the insurance companies, but a good portion of this burden will flow towards financial advisors in the form of time and energy required for study/exams.
As discussed in the article, these requirements may have the adverse effect of decreasing the number of insurance companies (and therefore annuity products) that financial advisors are willing to partner with.
Source: Investment News
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