West Virginia Strengthens Safeguards for Annuity Consumers

WASHINGTON, April 18 (TNStalk) -- The American Council of Life Insurers issued the following joint statement on April 17, 2023:

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American Council of Life Insurers (ACLI) President and CEO Susan Neely and National Association of Insurance and Financial Advisors (NAIFA)-West Virginia Executive Director John Pauley issued the following joint statement on the best interest annuity rule adopted recently by West Virginia's Offices of the Insurance Commissioner:

"A new rule adopted in West Virginia adds to the growing list of states that have adopted enhanced protections for consumers seeking lifetime income from annuities. The rule implements the 'best interest of consumer enhancements' in the National Association of Insurance Commissioners (NAIC) Suitability in Annuity Transactions Model Regulation.

"More than 2/3rds of the states have adopted similar laws and rules that also align with the SEC's Regulation Best Interest. Together, these measures provide consumers with strong protections at the state and federal levels.

"Unlike a fiduciary-only approach, these laws and rules make certain that all savers, particularly financially vulnerable middle-income Americans, can access information about different choices for long-term security in retirement. A 2022 survey finds that middle-income retirement savers would be very concerned about a regulation that keeps them from working with a financial professional on their retirement security needs.

"The U.S. Congress reaffirmed the importance of lifetime income when it passed legislation in 2019 and 2022 that made it easier for employers to include annuities in workplace retirement plans. With enhanced state and federal consumer protections in place, savers in West Virginia and 35 other states can be assured that financial professionals must act in the consumer's best interest when offering recommendations about annuities.

"We hope more states follow West Virginia and add to the nationwide momentum for these sensible protections. All consumers, regardless of where they live, should benefit from a best interest standard of care."

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Original text here: https://www.acli.com/posting/nr23-025