"The NAIC model regulation is a significant enhancement to the standard that applies when producers recommend annuities to their clients," said
The NAIC proposal also includes IRI-recommended language to provide a safe harbor for all insurance producers who are subject to, and actually comply with, comparable or greater standards such as requirements for those who already comply with rigorous standards.
IRI said that it expects many states will be eager to adopt the new annuity model.
"Strong, consistent regulation is important to protect consumers and to preserve consumers' choice of financial advice and products that meet their financial and retirement planning needs," Chopus said. "We look forward to working with states to implement this important regulation."