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.
Via email: Roni.email@example.com
Re: NH Insurance Department Rule Ins 305: Suitability in Annuity Transactions
Dear Ms. Karnis:
The Federation of Americans for Consumer Choice, FACC, appreciates the opportunity to comment on Annuity Transactions Rule Ins 305: Suitability in Annuity Transactions. FACC is a trade organization representing independent agents and agencies selling fixed annuities, life insurance, and long-term care insurance and works to ensure fair and equitable regulatory treatment of guaranteed products in the financial services marketplace.
FACC along with other industry trade organizations worked closely with the NAIC Suitability Working Group, comprised of state insurance regulators across the country, to develop the NAIC’s updated Model Regulation which is designed to enhance consumer protection with standards and requirements specifically befitting the life insurance industry and its consumers. FACC has actively promoted consistent and uniform adoption across all NAIC jurisdictions and strongly supports New Hampshire’s proposed amendments to Rule Ins. 305.
FACC respectfully requests three changes to the proposed Rule.
- 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. Specifically, we ask that 305.05 (a)(2) be modified to say “the producer shall prominently disclose to the consumer on a form substantially similar to Appendix A”. Parallel wording could be used for the other appendices as well. The significance of the words “substantially similar” as to the NAIC appendices – and likewise for Rule Ins 305 – is that insurance companies and producers are then permitted to adopt minor or technical deviations to the appendices provided those changes do not alter the substance of the forms. As you can appreciate, this is important so companies have latitude to make small changes – such as including their name on the form, modifying font, coordinating with other disclosure information – enabling those companies and producers to utilize the same forms across all jurisdictions that have adopted the NAIC model.
- The NAIC 2020 Model proposed a state’s effective date for the updates be at least six months after the formal adoption of the updated regulation. Accordingly, FACC respectfully urges the department to change the effective date of these updates to be at least six months after its formal adoption. Doing so will allow insurance companies and producers adequate time to update their business practices, notifications, and systems to ensure a smooth transition and allow them adequate opportunity to comply with the Rule’s new requirements.
- The producer training date requirements propose that currently licensed producers who have already completed an annuity training course prior to January 1, 2024, to, within six months after January 1, 2024, complete either a new four credit training course or an additional one-time one credit training course. To ensure that producers have the time required to complete either training course under these updated rules – and also to align with the NAIC model – FACC requests that the January 1, 2024 compliance date be changed to a date that is six months after the effective date of the updated regulation.
Again, thank you for the opportunity to provide comments on the proposed regulation. We appreciate the Department’s efforts to adopt and implement the NAIC model provisions and ask the Department to accept these modest changes during your adoption process. Please contact me if you have any questions or concerns or would like to discuss any of these issues.
Via email: Sara.K.Giroux@ins.nh.gov