WASHINGTON – A new rule adopted recently by the Illinois Department of Insurance provides greater safeguards for consumers seeking lifetime income from annuities. Illinois is the 32^nd state to adopt a measure that implements the “best interest of consumer enhancements” in the National Association of Insurance Commissioners (NAIC)  Suitability in Annuity Transactions Model Regulation.  The new laws and regulations also align with the SEC’s Regulation Best Interest.

“The U.S. Congress reaffirmed the importance of lifetime income when it passed legislation in 2019 and 2022 that made it easier for employers to include annuities in workplace retirement plans,” said American Council of Life Insurers President and CEO Susan Neely. “The new rule in Illinois adds momentum to the nationwide push for protections that safeguard consumers while also ensuring that middle- and working-class families retain access to annuities. We urge more states to adopt this practical consumer protection so more consumers looking to protect their family’s financial future can benefit from a best interest standard of care, no matter where they reside.”

“The new rule adopted by Director Dana Severinghaus and the Illinois department enhances the standards financial professionals must follow while ensuring that individual savers maintain access to, and information about, annuities, the only financial product in the marketplace that can provide guaranteed lifetime income,” said Illinois Life and Health Insurance Council President Laura Minzer. “It represents an important victory for Illinois savers.”

“Unlike a fiduciary-only approach that limits choices for consumers, the new rule offers strong protections while making sure savers, particularly financially vulnerable middle-income Americans, can access information about options for long-term security throughout retirement,” said National Association of Insurance and Financial Advisors-Illinois President Dennis Dean. “A recent survey finds that middle-income retirement savers would be very concerned about a regulation keeping them from accessing the professional financial guidance they want and need.”

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 94 percent of industry assets in the United States.

About NAIFA: The National Association of Insurance and Financial Advisors is the preeminent membership association for the multigenerational community of financial professionals in the United States. NAIFA members subscribe to a strong Code of Ethics and represent a full spectrum of financial services practice specialties. They work with families and businesses to help Americans improve financial literacy and achieve financial security. NAIFA provides producers a national community for advocacy, education, and networking along with awards, publications, and leadership opportunities to allow NAIFA members to differentiate themselves in the marketplace. NAIFA has 53 state and territorial chapters and 35 large metropolitan local chapters. NAIFA members in every congressional district advocate on behalf of producers and consumers at the state, interstate, and federal levels.      

About ILHIC: The Illinois Life and Health Insurance Council is an association of 31 insurance companies who offer a wide range of life, retirement, disability income, supplemental, accident and health insurance products in this state. The Council promotes and advocates for a healthy and competitive life and health insurance industry to support the financial well-being of employers, individuals, and families in Illinois.