State insurance regulators at the National Association of Insurance Commissioners, Kansas City, Mo., are getting ready to roll up their sleeves at the summer meeting next month and continue to tackle the suitability of annuity sales.
Two drafts were just released on May 25. One addresses proposed training requirement provisions and a second, suitability recommendation provisions.
The American Council of Life Insurers, Washington, will be looking at the new drafts and considering its response.
The training requirements look at components including: competency, continued education and product knowledge. The draft requires shared responsibility. Insurers would have to certify that agents meet training requirements.
The recommendation provisions focus on the nuts and bolts of making sure that a product is suitably sold. For example, the new draft discusses the duties of an insurer if an annuity is sold and when failure by the consumer to provide information after the potential buyer has been interviewed will free them from suitability requirements.
The draft requires that there be a reasonable assessment by the insurance producer or the insurer, if no producer is involved, of facts disclosed by a consumer regarding investments and other insurance products, the consumer’s financial situation and needs.