Monday, May 11, 2020

ACLI: Iowa Enhances Protections for Consumers Purchasing Annuities

WASHINGTON – American Council of Life Insurers (ACLI) President and CEO Susan Neely made the following comment on a best interest annuity rule approved today by the Iowa Insurance Department.  

“Iowa is setting the pace for states in adopting enhanced, harmonized protections for consumers who purchase annuities for lifetime income.  

“Retirement savers should be confident that financial professionals are acting in the best interest of consumers. The new rule achieves this goal.  

“The rule, which closely follows the National Association of Insurance Commissioners (NAIC) Suitability in Annuity Transactions Model Regulation, requires that Iowans receive important information, in plain English, to help them make informed decisions when purchasing an annuity. The new rule also closely aligns with SEC’s Regulation Best Interest, ensuring Iowa consumers’ interests are protected at the state and federal levels.  

“We thank Iowa Insurance Commissioner Doug Ommen for his leadership in advancing these important consumer protections at the NAIC and in his home state. We also urge other states to adopt the NAIC model so that all consumers, regardless of where they live, will benefit from a national best interest standard of care.

"With annuities, savers get financial certainty for themselves and their families. Helping people access this kind of security is vitally important public policy."

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The American Council of Life Insurers (ACLI) is the leading trade association driving public policy and advocacy on behalf of the life insurance industry. 90 million American families rely on the life insurance industry for financial protection and retirement security. ACLI’s member companies are dedicated to protecting consumers’ financial wellbeing through life insurance, annuities, retirement plans, long-term care insurance, disability income insurance, reinsurance, and dental, vision and other supplemental benefits. ACLI’s 280 member companies represent 94 percent of industry assets in the United States.

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Date Posted: May 11, 2020
Document ID: NR20-006