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

WASHINGTON, Feb. 11 -- 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) Ohio President Duane Borcherding made the following joint statement on a best interest annuity rule recently adopted by the Ohio Department of Insurance:

"When retirement savers in Ohio work with a financial professional, they should have confidence that person is acting in their best interest. This rule achieves this important goal by enhancing consumer protections while safeguarding access to information for lower- and middle-income savers.

"In 2019, Congress recognized the significance of helping people create a personal pension using annuities by passing legislation making it easier to include them in workplace retirement plans. Access to information about annuities is vital for anyone looking for the peace of mind that comes from a retirement income they can't outlive.

"Ohio joins a growing list of states that have taken similar action as part of a nationwide movement toward enhanced protections for annuity consumers. Similar measures adopted in Arizona, Arkansas, Delaware, Iowa, Michigan and Rhode Island closely follow the National Association of Insurance Commissioners (NAIC) Suitability in Annuity Transactions Model Regulation, which requires consumers receive important information, in plain English, to help them make informed decisions when purchasing an annuity.

"The new rules also closely align with SEC's Regulation Best Interest to provide consumers with state and federal protections.

"We urge other states to adopt the NAIC model to protect consumers as they plan for a secure retirement."