The National Association of Insurance Commissioners (NAIC) recently amended its suitability requirements.
The amendment makes insurers responsible for ensuring that all types of annuity sales or transactions are suitable.
Industry participants are struggling with the increased administrative complexity.
As discussed in a recent article in Investment News:
“The big change is that it requires a complete secondary review somewhere in the chain of the distribution line up to the company,” said Jim Mumford, first deputy insurance commissioner and securities administrator in Iowa. “It's clear in this model that the company is always responsible for the product issued, no matter where the follow-up took place,” he added.
Source: Investment News
Glossary:
Key Phrases:
- Log in to post comments
