Annuity agents will now be held to a new set of standards by the National Association of Insurance Commissioners.
According to InvestmentNews.com fixed annuity contracts will now be subject to the same regulatory compliance as variable annuities.
This means agents will be required to prove suitability for fixed contracts according to an individual’s overall portfolio. In addition, all agents will be required to complete a specific annuity suitability course in order to continue selling the products.
That’s good news for consumers. Hopefully that will reduce the number of garbage contracts sold to naive investors.
Read the full article here.