A National Association of Insurance Commissioners' working group will meet next month in Chicago for two days in hopes of finalizing a best-interest standard for annuity sales.
The Annuity Suitability Working Group plans a repeat of its May 31-June 1 meeting in Kansas City, this time Oct. 22-23 in the windy city. Meeting for a full day, then until noon the second day, the group was able to reach on consensus on several contentious issues.
But several issues remain and the group did not make much headway during the NAIC Summer Meeting in Boston, held in early August.
Chairman Dean Cameron announced a new goal of having the rule ready to present to the full committee by the NAIC Fall Meeting Nov. 15-18 in San Francisco.
"We are still making progress but have not accomplished everything that we need to. It's moving rather diligently forward," Cameron said in Boston. "We anticipate another meeting or two. I think we are working best when we can meet together collaboratively."
A potential sticking point reared its head in Boston when Maria Vullo, New York superintendent of financial services, said the group should include life insurance in its model law. The group declared life insurance outside its charge during the Kansas City meeting.
Meanwhile, New York finalized a tougher rule that covers life insurance as well.
"Certainly this committee should keep active in this and not just accept the working group's report and move on," Vullo said at the Life Insurance and Annuities Committee's Boston meeting. "There's no reason that the suitability should not apply to both, annuities as well as life insurance."
The Life Insurance and Annuities Committee must vote to approve anything the working group recommends. Then the full executive committee must adopt.
The working group wants to craft a best-interest sales model that falls somewhere between the suitability and fiduciary standards. But critics on both sides are making it a tough task.
Model laws are sent to the states for consideration and possible adoption.
InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected] Follow him on Twitter @INNJohnH.