American Council of Life Insurers: Alabama Adopts Enhanced Protections for Annuity Consumers' Best Interest

WASHINGTON, June 29 -- The American Council of Life Insurers issued the following joint statement:

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American Council of Life Insurers (ACLI) President and CEO Susan Neely and National Association of Insurance and Financial Advisors (NAIFA) Alabama Government Relations Committee Chair Sallie Bryant issued the following statement on the annuity best interest rule adopted recently by the Alabama Insurance Department:

"The new rule adopted by Insurance Commissioner Jim Ridling and the Alabama Insurance Department enhances protections for retirement savers seeking lifetime income through annuities. It makes certain that financial professionals they work with are acting in the best interest of consumers.

"This action adds important momentum to the nationwide push for stronger protections for annuity consumers. Alabama is the 13th 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 rules also align with the SEC's Regulation Best Interest (https://content.naic.org/sites/default/files/inline-files/Annuity%20Suitability%20Model%20Brief%20-%20January%202021.pdf). 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, have information about options for long-term security through retirement.

"The U.S. Congress reaffirmed the importance of lifetime income when it passed legislation in 2019 making it easier for retirement savers to understand the value of their savings in the form of an annuity. These protections safeguard consumers while also ensuring that middle- and working-class families will maintain the access they need to learn how annuities can help them secure peace of mind no matter how long they live.

"We hope other states take similar action as Alabama on behalf of retirement savers."