A welcome change to annuity sales practices may be on the horizon. Until now, strict suitability standards were only applied to Variable Annuities.
Last month the National Association of Insurance Commissioners approved a new set of standards that will apply to fixed products as well.
Hopefully this will bring some decency to sales practices nationwide, although implementation of the new regulation will depend on which states adopt the policy.
If you’re familiar with my site, I favor stringent standards for all annuities to ensure proper placement and maximum effectiveness. If you haven’t been here before, sign up today and learn to screen products and sales pitches yourself.
Read the National Underwriter release here.