Monday, January 4, 2021

Michigan Leaders Strengthen Protections For Annuity Consumers

WASHINGTON – American Council of Life Insurers (ACLI) President and CEO Susan Neely made the following comments on the best interest annuity law signed on December 29th by Governor Gretchen Whitmer:

“Elected leaders in Michigan have moved forward what’s taking hold across the nation for consumer protection and the ability of working Americans to become more financially secure. Similar rules to establish requirements for the best interest of consumers of lifetime income annuities have been adopted in Iowa, Arizona, Rhode Island and Arkansas. They require that consumers receive important information, in plain English, to help them make informed decisions when purchasing an annuity.

“The law signed by Gov. Whitmer closely tracks the ‘best interest of consumer enhancements’ in the National Association of Insurance Commissioners (NAIC)  Suitability in Annuity Transactions Model Regulation. It also aligns with the SEC’s Regulation Best Interest to give Michigan consumers a strong network of state and federal protections while preserving access to information and services they want and need as they work for a secure retirement.

“Most of all, it provides retirement savers with the confidence that the financial professionals they work with are acting in the best interest of consumers.

“Gov. Whitmer and the Michigan legislature have provided essential leadership for retirement savers. As the new year begins, we look forward to more states taking similar actions so consumers nationwide know they have important protections and access to lifetime income.”

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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: January 4, 2021
Document ID: NR21-001
Contact: Whit Cornman, 202-624-2442