Thursday, December 31, 2020
New Arkansas Rule Offers Enhanced Protection For Annuity Consumers
WASHINGTON – American Council of Life Insurers (ACLI) President and CEO Susan Neely made the following comments on the best interest annuity rule approved earlier this week by the Arkansas Insurance Department:
“Thanks to this new rule, retirement savers in Arkansas seeking guaranteed lifetime income from an annuity can be confident that financial professionals they work with are acting in the best interest of consumers.
“Arkansas is the latest in a growing number of states to adopt new protections that align with the ‘best interest of consumer enhancements’ in the National Association of Insurance Commissioners (NAIC) Suitability in Annuity Transactions Model Regulation. Similar rules have been adopted in Iowa, Arizona and Rhode Island that require
consumers receive important information, in plain English, so they make informed decisions when purchasing an annuity. These new rules also closely track with the SEC’s Regulation Best Interest to create a strong state and federal network that protects consumers and preserves access to information and services lower- and middle-income savers want and need.
“ACLI applauds Commissioner Alan McClain for his work on behalf of retirement savers. We hope more states take similar actions so consumers can enjoy these protections no matter where they live.”
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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American Council of Life Insurers | 101 Constitution Ave, NW, Suite 700 | Washington, DC 20001-2133
Date Posted: December 31, 2020
Document ID: NR20-054