Tuesday, June 29, 2021
New Rule Enhances Protections For Maine Annuity Consumers
WASHINGTON – American Council of Life Insurers (ACLI) President and CEO Susan Neely and National Association of Insurance and Financial Advisors (NAIFA) Maine President Terri Wright issued the following joint statement on the best interest annuity rule adopted recently by the Maine Bureau of Insurance:
“Retirement savers seeking lifetime income from annuities should work with financial professionals who act in consumers’ best interest. The rule adopted by Superintendent Eric Cioppa and the Bureau of Insurance makes certain that they will.
“Maine joins 14 other states that, as part of a growing nationwide trend, have enhanced protections for retirement savers relying on annuities for lifetime income. The new laws and regulations align with the ‘best interest of consumer enhancements’ in the National Association of Insurance Commissioners (NAIC) Suitability in Annuity Transactions Model Regulation. They also harmonize with the SEC’s Regulation Best Interest. Unlike a fiduciary-only approach that limits choices for consumers, these measures offer strong state and federal protections and make sure savers, particularly financially vulnerable middle-income Americans, are not discriminated against and have information about options for long-term security through retirement.
“Running out of money is one of Americans’ biggest fears in retirement. In 2019, Congress acted to address this concern with legislation that made it easier to include annuities in workplace retirement plans, giving savers options to establish lifetime income. And thanks to the new rule in Maine, retirement savers in the Pine Tree State will have access to the tools they need to secure peace of mind and certainty no matter how long they live.
“We hope other states take similar action as Maine so that all consumers will benefit from a best interest standard of care, regardless of where they live.”
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 29, 2021
Document ID: NR21-038