New Year, New Duties in the Sale of Annuities
State |
Actual or Proposed Effective Date |
Status |
Notable Items |
Alabama |
January 1, 2021 |
Introduced regulatory proposal |
Does not use the term “best interest” |
Arizona |
January 1, 2021 |
Adopted |
|
Arkansas |
On date of commissioner’s signature |
Introduced regulatory proposal |
|
Delaware |
August 1, 2021 |
Introduced regulatory proposal |
|
Iowa |
January 1, 2021 |
Adopted |
|
Kentucky |
July 1, 2021 |
Introduced regulatory proposal |
Includes consultants Does not exclude general communications to the public, general information and tools, or other product and sales material from the definition of “recommendation” Eliminates subjective standards such as “reasonable basis” and “reasonably appropriate” Requires insurer to maintain records of the information collected from the consumer |
Maine |
Not known |
Introduced regulatory proposal |
Requires consumer signature on each page of disclosure document |
Michigan |
Six months after enacted into law |
Bill in process |
|
Nevada |
Not known |
Introduced regulatory proposal in 2018, but refreshed proposal in 2020 |
Different structure than NAIC Model Includes prudence Slightly different consumer information to be obtained, including whether potential surrender charges, tax implications, and penalties could be incurred in connection with the funds used to purchase the annuity Requires training on financial exploitation of seniors and other vulnerable adults Requires establishment of supervision system by producers Safe Harbor limited to compliance with FINRA |
Ohio |
Six months after enacted into law |
Introduced regulatory proposal |
|
Rhode Island |
April 1, 2021 |
Adopted |
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