WASHINGTON BUREAU — The National Conference of Insurance Legislators has endorsed an annuity suitability model developed by state insurance regulators and approved a health insurance balance billing model of its own.
The National Conference of Insurance Legislators (NCOIL) has endorsed an annuity suitability model developed by state insurance regulators and approved a health insurance balance billing model of its own.
Suitability in Annuity Transactions Model Regulation
Members of NCOIL, Troy, N.Y., approved the Suitability in Annuity Transactions Model Regulation this weekend at a national meeting in Washington.
The model was developed by the National Association of Insurance Commissioners, Kansas City, Mo.
“Suitability” refers to the steps insurance agents are supposed to take to verify whether the annuities they are selling to customers appear to meet those customers’ needs.
The NAIC model:
Increases producer training requirements.
States that insurers are responsible for producer compliance.
Requires reviews of all recommended annuity transactions.
Authorizes state regulators to take action against unsuitable recommendations.