American Council of Life Insurers: North Dakota Enacts Law Protecting Annuity Consumers' Best Interest

WASHINGTON, March 25 -- The American Council of Life Insurers issued the following joint statement on March 24, 2021:

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American Council of Life Insurers (ACLI) President and CEO Susan Neely and National Association of Insurance and Financial Advisors (NAIFA) North Dakota President Lyle Kraft issued the following statement on the annuity best interest law signed today by Gov. Doug Burgum:

"The measure signed today by Governor Doug Burgum makes important enhancements to protections for annuity consumers in North Dakota. It would make certain that they receive important information from financial professionals acting in the consumer's best interest.

"Introduced by North Dakota Rep. George Keiser and Sen. Jerry Klein, the new law adds momentum to the drive for a national standard that safeguards the best interest of consumers regardless of where they live. Eight other states have adopted similar rules that closely track with the 'best interest of consumer enhancements' in the National Association of Insurance Commissioners (NAIC) Suitability in Annuity Transactions Model Regulation. They also align with the SEC's Regulation Best Interest. 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, are not discriminated against and 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 employers to include annuities in workplace retirement plans. These protections safeguard consumers while also ensuring that middle- and working-class families will maintain access to practical and easy-to-understand financial information.

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