Best Interest Standard for Annuities (R 2023-05)

The new law requires producers (and insurers where no producer is involved) to act in the best interests of their consumers when recommending annuities, complete annuity specific training, and to establish and maintain recommendation supervision systems that ensure the consumer's needs and financial objectives are met.  Rulemaking will align the regulations in the Insurance Code with the new law and updates to NAIC Model Regulation #275. Rulemaking will update training requirements, revise the prior suitability standard with the new best interest threshold, and generally achieve alignment between the applicable authorities.