Insurers cuffed by new annuity suitability rules

A welter of new annuity requirements are roiling insurers, who must now deal with the added burden of making sure annuities are suitable for customers.

The National Association of Insurance Commissioners in March adopted amendments to the annuity suitability model making carriers responsible for ensuring that all annuity transactions are appropriate for customers. The new rules also require insurers to establish a system to supervise recommendations made by sellers of annuities, and to make sure suitability standards are consistent with those of the Financial Industry Regulatory Authority Inc., when feasible.

Many representatives and agents say the new rules add to the already complex layers of review required by Finra...

Investment News: Insurers cuffed by new annuity suitability rules