Insured Retirement Institute Urges States to Quickly Adopt New NAIC Best Interest Model

WASHINGTON, Feb. 15 -- The Insured Retirement Institute issued the following news release:

The Insured Retirement Institute (IRI) is urging state insurance commissioners to act quickly to adopt a model regulation that sets the rules for insurance producers to follow when recommending annuity products to consumers. The model regulation was adopted February 13 by the National Association of Insurance Commissioners (NAIC).

IRI sent a letter to all state insurance regulators expressing support for the NAIC model regulation saying that it is "an improved model that is consistent with the U.S. Securities and Exchange Commission's Regulation Best Interest (Reg BI)."

Similar to Reg BI, the model regulation says that insurance producers shall act in the best interest of the consumer under the circumstances known at the time a recommendation is made, without placing the producer's or the insurer's financial interest ahead of the consumer's interest. Industry must comply with Reg BI starting June 30.

"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," wrote Wayne Chopus, IRI president and CEO. "This revised NAIC model regulation is a significant enhancement to the standard that applies when producers recommend annuities to their clients."