Monday, June 28, 2021
Virginia Adopts Enhanced Protections For Annuity Consumers
WASHINGTON – American Council of Life Insurers (ACLI) President and CEO Susan Neely and National Association of Insurance and Financial Advisors (NAIFA)-Virginia President Susan Campbell issued the following joint statement on the best interest annuity rule adopted recently by the Virginia Department of Insurance:
“Insurance Commissioner Scott White and the Virginia Department of Insurance have significantly advanced protections for retirement savers by adopting a new rule that ensures financial professionals will act in the best interest of consumers they serve. It builds on the growing, nationwide trend for enhanced consumer protections for savers seeking lifetime income from annuities.
“Virginia is the 14th state to adopt a measure that closely tracks the ‘best interest of consumer enhancements’ in the National Association of Insurance Commissioners (NAIC ) Suitability in Annuity Transactions Model Regulation. These new laws and regulations also align with the SEC’s Regulation Best Interest to provide consumers with strong state and federal protections. And, unlike a fiduciary-only approach that limits choices for consumers, these measures make sure savers, particularly financially vulnerable middle-income Americans, can access information about options for long-term security through retirement.
“Running out of money is among the biggest fears of people preparing for retirement. In 2019, Congress acted to address this concern with legislation making it easier for retirement savers to understand the value of their savings in the form of an annuity. New rules like Virginia’s support the goals of this legislation and give retirement savers the access they need to learn how annuities can help them secure peace of mind no matter how long they live.
“We urge other states to follow Virginia’s lead so more retirement savers nationwide can be confident the professionals they work with are acting in the best interest of consumers.”
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.
Date Posted: June 28, 2021
Document ID: NR21-037