American Council of Life Insurers: Colorado Adopts Stronger Protections for Annuity Consumers

WASHINGTON, Aug. 5 -- The American Council of Life Insurers issued the following statement on Aug. 4, 2022:

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American Council of Life Insurers (ACLI) President and CEO Susan Neely and National Association of Insurance and Financial Advisors (NAIFA) Colorado Political Action Committee Chair and Government Relations Committee member Brent Jones issued the following joint statement on the best interest annuity rule adopted recently by the Colorado Division of Insurance.

"The new rule adopted by Colorado Insurance Commissioner Michael Conway and his colleagues at the Division of Insurance gives retirement savers confidence that the financial professionals they are working with are acting in consumers' best interest.

"Colorado becomes the 28th state that as part of a nationwide, bipartisan effort has adopted enhanced protections for people seeking lifetime income in retirement through annuities. These new laws and regulations align with the 'best interest of consumer enhancements' in the National Association of Insurance Commissioners (NAIC) Suitability in Annuity Transactions Model Regulation. They also harmonize with the SEC's Regulation Best Interest.

"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 throughout retirement. 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.

"The U.S. Congress reaffirmed the importance of lifetime income when it passed legislation in 2019 that made it easier for employers to include annuities in workplace retirement plans. These protections safeguard consumers while also ensuring that middle- and working-class families retain access to annuities.

"We look forward to seeing additional states adopt this important consumer protection so that more consumers can benefit from a best interest standard of care."

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Original text here: https://www.acli.com/posting/nr22-030