NAIC Suitability Best Interest Model – Page 2 – Federation of Americans for Consumer Choice

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Washington Comment Letter

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.

Kim O'Brien August 28, 2023 No Comments

FACC Comment to Kansas Proposed Best Interest Rule

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.

Kim O'Brien June 1, 2023 No Comments

Member Alert – California Best Interest Legislation SB 263

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…

Kim O'Brien March 5, 2023 No Comments

South Dakota Letter to Governor Noem Requesting Veto of HB 1091

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.

Kim O'Brien February 21, 2023 No Comments

Oklahoma Comment Letter Requesting Specific Reference to NAIC Disclosure Language

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.

Kim O'Brien January 6, 2023 No Comments

Wyoming Comment Letter Requesting Specific Reference to NAIC Disclosure Language

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.

Kim O'Brien December 22, 2022 No Comments

Georgia Comment Letter Opposing Mere Reference to Best Interest

FACC must strongly oppose the proposal to amend Georgia’s suitability regulation as currently drafted. The current proposal attempts to create a “best interest” standard in a single sentence which FACC believes would be a serious mistake and would prove counterproductive as compared to adopting the newly revised NAIC Model Regulation in its entirety.

Kim O'Brien December 12, 2022 No Comments

Comment Letter Commending Full Incorporation of NAIC Model

Georgia Insurance Department is to be commended for its interest in modernizing your existing regulation and the following path of 29 other states who have adopted the regulation.

Kim O'Brien November 28, 2022 No Comments

Illinois Comment Regarding NAIC Suitability Proposal

FACC comments on one apparent deviation in the proposed amendments from the NAIC model regulation. We note a portion of Section 1.B of the model regulation was not included in the Illinois proposal in its entirety as represented by the underlined language: Nothing herein shall be construed to create or

Kim O'Brien November 8, 2022 No Comments

Illinois Comment Letter Requesting Civil Liability Protection for Agents

If there is doubt, the Department should incorporate the above language for consistency purposes and avoid creating unnecessary civil action exposure for agents and agencies operating in Illinois.

Kim O'Brien October 31, 2022 No Comments