More States Rush to Adopt Best Interest Annuity Sales Rules

Several more states are moving quickly to add a best-interest annuity sales standard to its regulation of insurance products. The latest states to pursue the best-interest model law put forth by the National Association of Insurance Commissioners are Michigan, Arkansas, Maine and Nebraska. In February 2020, the NAIC adopted a model law that articulates a best-interest standard through the following four obligations: care, disclosure, conflict of interest and documentation. With the outbreak of COVID-19, states were slow to adopt the model in the months that followed. The NAIC began lobbying state officials over the summer of 2020 and began work on a series of FAQs to help facilitate adoption. | more