For reasons explained herein, FACC must strongly oppose the proposal to amend Nevada’s suitability regulation as presently drafted. While we are pleased Nevada is seeking to update its regulations, FACC is extremely troubled by the extensive deviations from the NAIC model regulation found in this proposal, which will have adverse consequences for industry and the public, both foreseeable obstacles and unintended consequences. We urge the Department to withdraw this proposal and instead adopt the NAIC model regulation updates.
FACC has previously provided comments to the Department and commends its initiative in proposing regulations that align with the NAIC Model Regulation on Suitability in Annuity Transactions. We wish to express our continuing gratitude to you and others at the Department for moving forward with these regulations.
The NAIC model and many other states permit insurance companies and producers to utilize producer disclosures that are “substantially similar to NAIC Appendices A, B, and C.” Many insurers and producers are already using those disclosure forms in other states and it would help insurance companies and producers if Utah conformed to the NAIC model language. Specifically, we ask that the Rule be modified to say “the producer shall prominently disclose to the consumer on a form substantially similar to the 2020 NAIC Model #275 Suitability in Annuity Transactions Appendix A”. Parallel wording could be used for the other appendices as well. As you can appreciate, this is important to enable insurance companies and producers to utilize the same forms across all jurisdictions that have adopted the NAIC model.
The NAIC model and many other states permit insurance companies and producers to utilize producer disclosures that are “substantially similar to” NAIC Appendices A, B, and C. Many insurers and producers are already using those disclosure forms in other states and it would help insurance companies and producers if New Hampshire conformed to the NAIC model language.
FACC would like to make one suggestion to the Department which is to promulgate another rule that would specify content of the required disclosures referenced in the updated statutes consistent with the NAIC Model Regulation as set forth in Appendices A, B, and C. HB 1120 provides that the Department shall post the Appendices on its website which FACC presumes will be the same forms as provided in the NAIC Model Regulation. FACC requests the Department consider adopting the NAIC appendices through a regulation that could lay out the sample forms or incorporate the NAIC forms by reference. Such promulgation, or incorporation of the NAIC forms by reference, would ensure that Washington is consistent with the NAIC model regulation in regard to disclosure requirements and provide certainty to regulated parties both now and into the future.
FACC believes the NAIC Model Regulation provides strong consumer protection while at the same time preserving consumer choice through well-balanced thoughtful regulatory requirements consistent with different delivery systems in the marketplace. We have long held that it is important for states to adopt the model requirements uniformly without deviation so as to leverage the expertise of the NAIC and so that companies and agencies operating across state boundaries can comply efficiently and utilize uniform practices that most effectively serve consumer interests.
TO: FACC Members and Supporters We want to make you aware of draft legislation soon to be introduced in California that is highly troublesome. This is legislation advocated by the California Insurance Commissioner which is contrary to the NAIC Model and would be harmful to consumer choice. FACC is concerned…
From the standpoint of good governance and promoting sound regulation that is business friendly, consumer protective, and consistent with a competitive marketplace, we believe South Dakota would be best served to not deviate from the NAIC model requirements. We hope you – as Governor – will appreciate and agree that it is a strong statement in favor of state insurance regulation that so many states have already banded together to adopt best interest standards befitting the insurance industry and thereby have helped preserve state regulation against federal encroachment.
We urge that Subchapter 17 be modified to specify the content of required disclosure forms rather than stating “on a form prescribed by the Commissioner.” These statements appear in the “Disclosure obligation” and “Documentation obligation” provisions in subsection 365:25-17-7 (a) concerning Best Interest Obligations. This modification could be done either by incorporating the full forms into the regulation as provided for in the NAIC Model Regulation or making specific reference to the NAIC Model Regulation exhibit forms.
We urge Wyoming to specify the content of Disclosures A, B, and C as done in the Model Regulation. This could be done either by incorporating the full forms into the regulation or making specific reference to the NAIC model regulation exhibit forms. The NAIC model regulation identifies these exhibit forms as Appendices A, B, and C.