WASHINGTON – American Council of Life Insurers (ACLI) President and CEO Susan Neely and National Association of Insurance and Financial Advisors (NAIFA) Ohio President Duane Borcherding made the following joint statement on a best interest annuity rule recently adopted by the Ohio Department of Insurance:
“When retirement savers in Ohio work with a financial professional, they should have confidence that person is acting in their best interest. This rule achieves this important goal by enhancing consumer protections while safeguarding access to information for lower- and middle-income savers. In 2019, Congress recognized the significance of helping people create a personal pension using annuities by passing legislation making it easier to include them in workplace retirement plans. Access to information about annuities is vital for anyone looking for the peace of mind that comes from a retirement income they can’t outlive.
“Ohio joins a growing list of states that have taken similar action as part of a nationwide movement toward enhanced protections for annuity consumers. Similar measures adopted in Arizona, Arkansas, Delaware, Iowa, Michigan and Rhode Island closely follow the National Association of Insurance Commissioners (NAIC) Suitability in Annuity Transactions Model Regulation, which requires consumers receive important information, in plain English, to help them make informed decisions when purchasing an annuity. The new rules also closely align with SEC’s Regulation Best Interest to provide consumers with state and federal protections.
“We urge other states to adopt the NAIC model to protect consumers as they plan for a secure retirement.”
About ACLI: 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 95 percent of industry assets in the United States.
ABOUT NAIFA: Founded in 1890, NAIFA is the oldest, largest and most prestigious association representing the interests of financial services professionals from every Congressional district in the United States. Our mission – to advocate for a positive legislative and regulatory environment, enhance business and professional skills, and promote the ethical conduct of its members – is the reason NAIFA has consistently and resoundingly stood up for financial services professionals and called upon members to grow their knowledge while following the highest ethical standards in the industry.