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View a copy of the updated state chart.
Arizona has become the second state after Iowa to enact a best interest standard for the sale of annuities. Like the Iowa law, both of which become effective January 1, 2021, Arizona’s law is modeled after the National Association of Insurance Commissioners (NAIC) model regulation. The new law requires insurance producers to “act in the best interest of the consumer under the circumstances known at the time the recommendation is made, without placing the producer’s or the insurer’s financial interest ahead of the consumer’s interest.”
The Iowa Insurance Division has adopted the insurance producer portion of the rule for its proposed best interest standard for annuity sales, effective January 1, 2020. In response to comments, the Division elected to postpone the rule’s application to securities professionals, indicating that it intends to publish new rulemaking for the securities industry later this summer.
See the updated state chart.
The Iowa Insurance Division has proposed a “best interest” standard for the sale of annuities in that state. The press release for the proposal indicates that it “follows efforts by the National Association of Insurance Commissioners (NAIC) to develop a model Suitability in Annuity Transactions Model Regulation” and stated that the proposal is designed to be “harmonized“ with the SEC’s Regulation Best Interest. The comment period expires on April 28, 2020, though it seems this could be extended in light of the coronavirus crisis.