Adoption by States is a 2021 Priority
Feb 23, 2021
The National Association of Insurance Commissioners (NAIC) adopted a Best Interest Standard for annuity recommendations in February 2020 after reviewing the original suitability standard from the early 2000’s. In addition to increasing the standard of care required by producers, the model also closely aligned with the SEC Regulation Best Interest, creating a more streamlined compliance regime for advisors.
As of today, seven states have moved to adopt the NAIC model while another nine have pending proposals – including VA, ID, ME, NE, ND, TX, KY, AL, NV in 2021 with more states expected to move in a similar direction.
The NAIC has identified broad adoption of this best interest standard as a top priority for 2021 and it could have ramifications for federal action by the SEC and DOL.
Looking for more information? Click here to go to the NIAC website and here to read Finseca’s analysis of Standards of Conduct in 2021.
