The new model rule, adopted by NAIC in February, incorporates a best interest standard of conduct.
Arkansas held a hearing Thursday to discuss its proposal. No action was taken by the Arkansas Insurance Department as it was a basic informational hearing, Dan Zielinski, spokesman for the Insured Retirement Institute, told ThinkAdvisor in an email.
Similar to Reg BI, Arkansas' rule "will require insurance producers to act in the best interest of the consumer under the circumstances known at the time a recommendation is made, without placing the producer's or the insurer's financial interest ahead of the consumer's interest," IRI stated in a comment letter to the Arkansas Insurance Department.
IRI continues to urge all states to adopt the NAIC model, Zielinski said, adding that "we hope to see some of them finalize action before the end of the year."