WASHINGTON – American Council of Life Insurers (ACLI) President and CEO Susan Neely and National Association of Insurance and Financial Advisors (NAIFA)-Wyoming President Andrea C. Robinson issued the following joint statement on the best interest annuity rule adopted recently by the Wyoming Department of Insurance:

“Wyoming consumers seeking lifetime income from an annuity now have stronger protections thanks to the new rule adopted by Commissioner Jeffrey Rude and the Wyoming Department of Insurance. These enhanced safeguards assure that financial professionals must act in the consumer’s best interest when offering recommendations about annuities.

“Residents in more than two-thirds of the states have implemented 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 Interestproviding robust consumer protection at the state and federal levels.

“Unlike a fiduciary-only approach, these measures ensure that all savers, particularly financially vulnerable middle-income Americans, can access information about different choices for long-term security in retirement. A 2022 survey finds that middle-income retirement savers would be very concerned about a regulation that keeps them from working with a financial professional on their retirement security needs.

“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. With the enhanced state and federal consumer protections, savers in Wyoming and 34 other states can be assured that financial professionals must act in the consumer’s best interest when offering recommendations about annuities.

“We hope other states join to this nationwide effort behind these sensible protections. All consumers, regardless of where they live, should benefit from a best interest standard of care.”

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.