Des Moines, Iowa – The Iowa Insurance Division today filed an adopted regulation to require annuity agents to act in the best interest of their customers. Iowa’s annuity standards follow efforts by the National Association of Insurance Commissioners (NAIC) to develop a model Suitability in Annuity Transactions Model Regulation that is harmonized with rulemaking by the U.S. Securities and Exchange Commission (SEC) as well as a public comment period and hearing by the Iowa Insurance Division.
Iowa Insurance Commissioner Doug Ommen, who is also the state's securities regulator, offered the following comments.
“Iowans expect their financial professional to act in the consumer’s best interest when recommending an annuity. Iowa not only expects it, but we will require it. We are very pleased that the NAIC has approved a best interest standard. I hope to also work with other U.S. insurance regulators to require the same of any Iowa insurer writing annuity business in those states.
I am thankful for the many thoughtful industry comments during this process. When regulatory changes are made, it’s important to make sure implementation timelines work for all parties. We received several comments requesting that due to COVID-19 we delay the proposed best interest standard in our securities regulations. We have decided that is the appropriate course. I anticipate proposing best interest securities standards again later this summer.”
Click here to view the adopted regulation. The final adopted regulation is anticipated to be published in the Iowa Administrative Bulletin on June 3, 2020.