NAIFA-Colorado asks DOI to adopt NAIC Annuity Model Regulation

NAIFA-Colorado Government Relations Co-Chair, Brent Jones asks DOI to adopt NAIC Annuity Model Regulation

July 12, 2022

Brent A Jones LUTCF, LACP, NAIFA member since 2005, spoke on behalf of NAIFA-Colorado during the Colorado Division of Insurance (DOI) during the Friday, July 1st Public Hearing on the draft proposed amended regulation 4-1-11 concerning best interest obligations and supervision suitability in annuity transactions.

DOI is proposing revisions to the rules governing suitability in annuity transactions. The revisions would put in place a best interest standard of conduct in connection with annuity recommendations and sales and align with the updated National Association of Insurance Commissioners (NAIC) Suitability in Annuity Transactions Model Regulation.

NAIFA-Colorado and NAIFA-National believe that the proposed Colorado best interest standard strikes the appropriate balance between protecting consumers, promoting market competition, and avoiding over regulation. These rules safeguard the ability of consumers to access guidance to plan for their financial futures. The best interest standard protects customers’ choices in competitive products marketplace and provides trustworthy options for retirement planning.

?Best Interest Standard

?Jones stated, “I am going to put my clients interests in front of my own, and I’m going to meet?our?obligations. As an industry member and producer for the past 18 years, these are values that I, and my colleagues, believe in”.

?Throughout the year committee members in conjunction with the Industry Producer Advisory Council chaired by Shelley Rowe, a long time NAIFA-Colorado member and industry leader have met and worked closely with Insurance Commissioner Michael Conway and lead DOI staff by providing NAIC Annuity BI reg documents. NAIFA-Colorado shared expert opinions and industry insights on producer and consumer needs related to the rule.?

?Jones along with Allan Jensen, Chair of NAIFA-Colorado Government Relations Committee previously submitted a position statement and comments on the NAIC BI Rule in May 2022 during the DOI public comment period.

NAIFA-Colorado continues to welcome the open communication and dialog with Commissioner Conway and division staff on matters involving consumer and industry producers.?The Government Relations Committee would like to thank Commissioner Conway and DOI lead staff for granting a hearing to address proposed annuity regulations as well as other industry issues of importance to Coloradans. ??