Monday, May 17, 2021
Susan Neely, ACLI President and CEO, and Dan Rust, NAIFA-Montana Government Relations Chairman and National Committeeman for Montana, have issued the following statement on the annuity best interest law recently signed by Gov. Greg Gianforte
WASHINGTON – Susan Neely, American Council of Life Insurers (ACLI) President and CEO, and Dan Rust, National Association of Insurance and Financial Advisors (NAIFA)-Montana Government Relations Chairman and National Committeeman for Montana, issued the following statement on the annuity best interest law recently signed by Gov. Greg Gianforte:
“The enhanced protections signed into law by Gov. Greg Gianforte ensures financial professionals in the Treasure State will act in the best interest of consumers they serve.
“This new law adds momentum to the nationwide push for standards that safeguard the best interest of consumers seeking lifetime income from annuities. Eleven states have now adopted laws and regulations that closely track with the ‘best interest of consumer enhancements’ in the National Association of Insurance Commissioners (NAIC) Suitability in Annuity Transactions Model Regulation. They also align with the SEC’s Regulation Best Interest. These measures offer strong state and federal protections and, unlike a fiduciary-only approach that limits choices for consumers, make sure savers, particularly financially vulnerable middle-income Americans, are not discriminated against and have information about options for long-term security through retirement.
“The U.S. Congress acknowledged the importance of lifetime income in 2019 with legislation making it easier for employers to include annuities in workplace retirement plans. The protections adopted in Montana safeguard consumers while also ensuring they will maintain access to practical and easy-to-understand financial information.
“We urge other states to follow Montana’s example and enhance protections for retirement savers.”
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.