NAIC to Spotlight Annuity Sales Standard Update Gray Zones

Reg BI opponents contend that the flexibility of that approach may weaken protections for investors.

The Gray Zones

The NAIC’s Annuity Suitability Working Group is preparing to present the implementation map Wednesday, in Tampa, Florida, at the NAIC’s fall national meeting, at an in-person session of the NAIC’s Life Insurance and Annuities Committee.

The map reflects the NAIC’s understanding of state adoption efforts as of Nov. 27, according to the map legend.

The states that are still colored gray, meaning that they appear to be far from implementing the NAIC’s 2020 suitability model changes, includes some high-population states, such as California and Florida, as well as smaller states, such as New Hampshire and Vermont.

Some of the other states in the map’s gray zone are New Jersey, Oregon and Washington, and Indiana, Kansas, Louisiana, Missouri, Oklahoma and Utah.

The District of Columbia is also in the gray zone.

The NAIC marked Georgia as gray, but the Insured Retirement Institute says it believes suitability update adoption is coming in Georgia soon.

Downtown Tampa, Florida. (Photo: Shutterstock)