For reasons explained herein, 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.
It is critical to recognize the term “best interest” is not self-defining and thus adopting such a shorthand version would invite uncertainty and confusion in the annuity marketplace. It would subject agent recommendations and insurance company oversight obligations to vague and inconsistent enforcement standards which would be wholly contrary to your stated purposes and ultimately harmful to providers and consumers transacting business in Georgia.
FACC wishes to commend the Office of the Commissioner for moving forward to adopt the updated National Association of Insurance Commissioners (NAIC) Model Regulation #275. In particular, we applaud efforts by the Office of the Commissioner to adopt the model regulation in full in lieu of the originally proposed amendment using only a shorthand version as introduced last August.
