According to the American Council of Life Insurers (ACLI) and the National Association of Insurance and Financial Advisors (NAIFA), Maryland is the newest state to finalize the best interest rule for annual sales and recommendations.
The rule, which was recently adopted by the Maryland Insurance Administration, was based on? model 2020. passed in by the National Association of Insurance Commissioners (NAIC). It was designed as a template for states to align their own mandates on annuities with the Securities and Exchange Commission’s regulation best interest regulation that covers securities sales and recommendations.
To date, 22 states, including Maryland, have passed their own regulation or legislation depending on the rule. In early March, South Dakota Gov. Kristi Noem signed her rule into law, arguing it would strengthen consumer protections for retirees in the state.
February 24, Adopted the Office of the Insurance Superintendent of New Mexico Following your own best interest annuity rules Pennsylvania’s Way of a similar law signed by the government. Tom Wolf late last year.
Shortly after the NAIC passed its model rule in 2020, Iowa became the first state to sign off on its own regulation based on it, followed by Connecticut, ohio And Virginia, Kentucky and Mississippi At the end of last year also followed.
In a statement on Maryland’s new rule, ACLI President and CEO Susan Neely, former NAIFA President Paul Dougherty and Maryland’s League of Life and Health Insurers Executive Director Matthew Celentaro called the NAIC model the opposite of “credible-only.” “The approach provides savers with access to a greater diversity of information about retirement planning strategies, argues the best interest standard.
“We urge more states to implement these sensible protections so that more consumers working to protect the financial future of their families can benefit from the best interest standard of care, no matter where they live,” the trio said. said.
In addition to Maryland and South Dakota, five other states were pending proposals for rules drawn on the NAIC’s template, including Nevada, South Carolina, Wisconsin, Hawaii and North Carolina, according to Sarah Wood, director of state policy and regulatory affairs for the Insured Retirement Institute. according . in a previous interview with WealthManagement.comShe estimated that 35 states could finalize their own version by the end of this year.