American Council of Life Insurers: California Strengthens Protections for Annuity Consumers

WASHINGTON, March 2 -- The American Council of Life Insurers issued the following news release:

The American Council of Life Insurers (ACLI), Association of California Life and Health Insurance Companies (ACLHIC), National Association of Insurance and Financial Advisors (NAIFA), Finseca, Insured Retirement Institute (IRI), National Association for Fixed Annuities (NAFA), Federation of Americans for Consumer Choice (FACC), and Independent Insurance Agents & Brokers of California (IIABCal) issued the following statement today on a new California law that enhances protections for annuity consumers:

"The new law signed by California Governor Gavin Newsom strengthens protections for consumers seeking lifetime income through annuities. It enhances the standards financial professionals in California must follow while also safeguarding consumers' access to, and information about, annuities, the only financial product in the marketplace that can provide guaranteed income for life. With these new protections, millions of savers in California can be confident that financial professionals must act in the consumer's best interest when offering recommendations about annuities.

"Sponsored by Insurance Commissioner Ricardo Lara and authored by Senator Bill Dodd, the law passed the legislature with overwhelming, bipartisan support. California becomes the 44th state to protect retirement savers by adopting measures that closely track the 'best interest of consumer enhancements' in the National Association of Insurance Commissioners (NAIC) Suitability in Annuity Transactions Model Regulation. Over 90% of Americans now live in a state with a best interest standard for annuity sales. The new laws and rules also align with the SEC's Regulation Best Interest to provide consumers with robust state and federal consumer protections.

"The actions taken by Commissioner Lara, Senator Dodd and all the law's supporters take us one step closer to nationwide adoption of these important protections and all consumers, regardless of where they live, benefiting from a best interest standard. We anticipate the remaining states will adopt the model by year end, with several doing so in the next few weeks."

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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 275 member companies represent 93 percent of industry assets in the United States.

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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.

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About ACLHIC: The Association of California Life and Health Insurance Companies is the largest life and health insurance trade association in California. Our members are at the forefront of helping Californians meet their financial and retirement needs while also preparing for life's unexpected challenges.

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About Finseca: At Finseca, we know that financial security improves people's lives and protects their livelihoods and future wellbeing. We are rising to the challenge of increasing financial security for all. Finseca represents the men and women of the financial security profession who dedicate themselves to delivering financial security to their clients every day.

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About IRI: The Insured Retirement Institute (IRI) is the leading association for the entire supply chain of insured retirement strategies, including life insurers, asset managers, broker-dealers, banks, marketing organizations, law firms, and solution providers. IRI members account for 90 percent of annuity assets in the U.S., include the foremost distributors of protected lifetime income solutions, and are represented by financial professionals serving millions of Americans. IRI champions retirement security for all through leadership in advocacy, awareness, research, and the advancement of digital solutions within a collaborative industry community. Learn more at www.irionline.org.

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About NAFA: NAFA, the National Association for Fixed Annuities, is the premier trade association exclusively dedicated to fixed annuities. Our mission is to promote the awareness and understanding of fixed annuities. We educate annuity salespeople, regulators, legislators, journalists, and industry personnel about the value of fixed annuities and their benefits to consumers. NAFA's membership represents every aspect of the fixed annuity marketplace covering fixed annuities sold by independent agents, advisors and brokers. NAFA was founded in 1998. For more information, visit www.nafa.com.

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About FACC: The Federation of Americans for Consumer Choice, Inc. (FACC) is a 501(c)6 non-profit organization incorporated in the state of Texas whose members are independent marketing organizations, agencies, and agents engaged in the distribution of fixed insurance and annuity products. FACC promotes public policy recognizing the value of guaranteed insurance solutions and preserving freedom of choice for consumers who seek products and services from independent agents representing multiple carriers and product options.

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About the IIABCal: IIABCal is the largest statewide trade association representing independent insurance agents and brokers who serve customers seeking both personal and commercial lines of insurance and workers' compensation.

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Original text here: https://www.acli.com/posting/nr24-022