SUITABILITY IN ANNUITY TRANSACTIONS MODEL …

NAIC MODEL Laws, Regulations, Guidelines and Other Resources Spring 2020 2020 National Association of Insurance Commissioners 275-1 SUITABILITY IN ANNUITY TRANSACTIONS MODEL REGULATION Table of Contents Section 1. Purpose Section 2. Scope Section 3. Authority Section 4. Exemptions Section 5. Definitions Section 6. Duties of Insurers and Producers Section 7. Producer Training Section 8. Compliance Mitigation; Penalties; Enforcement Section 9. Recordkeeping Section 10. Effective Date Appendix A. Insurance Agent (Producer) Disclosure For Annuities Appendix B. consumer Refusal to Provide Information Appendix C. consumer Decision to Purchase an ANNUITY Not Based on a Recommendation Section 1. Purpose A. The purpose of this regulation is to require producers, as defined in this regulation, to act in the best interest of the consumer when making a recommendation of an ANNUITY and to require insurers to establish and maintain a system to supervise recommendations so that the insurance needs and financial objectives of consumers at the time of the transaction are effectively addressed.

Drafting Note: The language of Subsection B comes from the NAIC Unfair Trade Practices Act (#880). If a state has adopted different language, it should be substituted for Subsection B. Drafting Note: Section 989J of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank Act”) specifically refers to this

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  Model, Practices, Protection, Transactions, Trade, Consumer, Annuity, Suitability, Unfair, Consumer protection, Suitability in annuity transactions model, Unfair trade practices

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