Wyoming Adopts Enhanced Protections for Annuity Consumers

WASHINGTON, April 12 (TNStalk)(TNSrpt) -- The American Council of Life Insurers issued the following statement on April 11, 2023, with National Association of Insurance and Financial Advisors:

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American Council of Life Insurers (ACLI) President and CEO Susan Neely and National Association of Insurance and Financial Advisors (NAIFA)-Wyoming President Andrea C. Robinson issued the following joint statement on the best interest annuity rule adopted recently by the Wyoming Department of Insurance:

"Wyoming consumers seeking lifetime income from an annuity now have stronger protections thanks to the new rule adopted by Commissioner Jeffrey Rude and the Wyoming Department of Insurance. These enhanced safeguards assure that financial professionals must act in the consumer's best interest when offering recommendations about annuities.

"Residents in more than two-thirds of the states have implemented the 'best interest of consumer enhancements' in the National Association of Insurance Commissioners (NAIC) Suitability in Annuity Transactions Model Regulation. These new laws and regulations also align with the SEC's Regulation Best Interestproviding robust consumer protection at the state and federal levels.

"Unlike a fiduciary-only approach, these measures ensure 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 the enhanced state and federal consumer protections, savers in Wyoming and 34 other states can be assured that financial professionals must act in the consumer's best interest when offering recommendations about annuities.

"We hope other states join to this nationwide effort behind these sensible protections. All consumers, regardless of where they live, should benefit from a best interest standard of care."

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REPORT: https://www.acli.com/-/media/acli/public/files/pdfs-public-site/public-newsroom/051822_greenwald_aclisurveymoderateincomeretirementsvrspresentation.pdf

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Original text here: https://www.acli.com/posting/nr23-021