The Fixed Annuity Consumer Choice Campaign has been working hard to improve the NAIC best interest proposal for the benefit of independent agents. We have advocated changes to make the rule more objective in its requirements and more practical from an implementation and compliance standpoint.
Dear Ms. Matthews:
Jolie, as indicated in our submission earlier this week, we have continued to work on the redline and are now
submitting an updated version with further suggested edits. We ask that you incorporate these additional
edits into your summary chart.
Dear Members of the Annuity Suitability Working Group:
The FACC Campaign appreciates the time and effort the Group has dedicated over the past 18 months and welcomes the opportunity to comment on the newest September Working Group Draft. While there are certain features of the proposal that are improved, we are generally disappointed with the latest proposal because it suffers from the same problems as prior drafts.
FACC to NAIC – Proposed Best Interest Rule Must ONLY Compare Insurance Agents to Other Insurance Agents! Preview Text: Read our comment to the NAIC
As you know by our comments, we support the standard put forward by Iowa in Section 6 A (1) (d), or something similar, because it provides a benchmark for determining what is meant by so many other undefined and open-ended terms like “best interest”, “best suited”, “care”, “skill”, “diligence” etc.
Dear Members of the Annuity Suitability Working Group
We wish to follow up on an important issue considered in this week’s phone call concerning the Care Obligation and ask for reconsideration.
We hope not to strain the patience of the Working Group, but we are perplexed by the decision to remove section 6 A (1) (d).
Dear Director Froment:
We appreciate you have reached out and requested feedback on the following question outlined in Ms. Matthews May 22, 2019 email:
If the model would require “best interest” as the appropriate standard of conduct, how should “best interest” be defined in order to provide an objective standard for compliance and regulatory oversight?
As you know from our previously submitted comments, we oppose applying a security industry “best interest” standard to fixed annuities.
As the National Association of Insurance Commissioners considers amending the model suitability regulation, and as the U.S. Securities and Exchange Commission considers adoption of a parallel best interest proposal, the FACC Campaign finds certain misconceptions have taken root that must be addressed to ensure the ongoing debate is conducted based on facts and sound reasoning rather than preconceived notions or inaccurate assumptions. Kim O’Brien helped kill the DOL fiduciary rule. Here’s what she thinks about the new sales standards projects.
On February 13, 2019, the NAIC adopted the new Best Interest standards for annuity sales. The Fixed Annuity Consumer Choice Campaign (FACC) has been at the forefront of development of these new standards throughout the NAIC process.
For those following NAIC developments, the working group is drafting an update to the model suitability regulation, deciding whether to include an explicit “best interest” provision. It has sparked debate between factions on the working group but the FACC Campaign is not convinced it matters. FACC maintains the NAIC should