“FACC welcomes efforts of the Department of Banking and Insurance to adopt the updated National Association of Insurance Commissioners (NAIC) Model Regulation #275 incorporating best interest obligations into existing suitability regulations. Assuming it is the intent of the Department to adopt the NAIC model regulation updates in their entirety, FACC supports and applauds these efforts.
…With regard to the synopsis, FACC believes one small point worth mentioning is that the reference to
the NAIC having consulted with the SEC and US Department of Labor would be an overstatement if it
suggests anything more than the NAIC met with other agencies and took into account contemporaneous
developments in the securities and ERISA related industries. We believe the NAIC sensibly designed its
own requirements to meet unique characteristics of the insurance industry and did not necessarily seek
to conform to other industry requirements. The Department may want to consider this in drafting any
other contextual commentary on the relationship between the work of the NAIC and other agencies.”
the NAIC having consulted with the SEC and US Department of Labor would be an overstatement if it
suggests anything more than the NAIC met with other agencies and took into account contemporaneous
developments in the securities and ERISA related industries. We believe the NAIC sensibly designed its
own requirements to meet unique characteristics of the insurance industry and did not necessarily seek
to conform to other industry requirements. The Department may want to consider this in drafting any
other contextual commentary on the relationship between the work of the NAIC and other agencies.”