Suitability and Best Interest in Annuity Transactions for States Adopting the NAIC Model Regulation

Security Mutual Life continues its commitment to compliance with suitability and best interest standards and procedures in the sale of annuities. In February 2020, the National Association of Insurance Commissioners (NAIC) approved revisions to the Suitability in Annuity Transaction Model Regulation (referred to herein as the “model regulation”) to provide all recommendations in the sale of annuities must be in the best interest of the consumer and that the financial interest of the producer is not placed ahead of the consumer’s interest when making a recommendation. As of the date of this Field Bulletin, forty-eight states have adopted the revised NAIC model regulation for Suitability in Annuity Transactions and implemented legislation accordingly. Some states have adopted the model regulation with modifications. The model regulation establishes standards and procedures for recommendations to consumers with respect to annuities.

This Field Bulletin provides policies and procedures for those states which have adopted the NAIC Suitability in Annuity Transactions Model Regulation or similar legislation.