Interstate State

NAIFA is working with advocacy partners, including the American Council of Life Insurers (ACLI), to encourage every state to adopt the NAIC Suitability in Annuity Transactions Model. The NAIC model requires financial professionals to work in the best interests of their clients during annuities transactions and aligns with the federal Securities and Exchange Commission’s Regulation Best Interest. It also preserves the ability of consumers to work with agents and advisors offering a variety of successful business models and avoids restrictions that would likely make it impossible for financial professionals to work with Main Street investors and retirement savers.

Promoting the NAIC model is a state advocacy priority for NAIFA because the cultures and are represented in every Congressional district.” model offers a consistent and workable consumer protection solution. If every state were to adopt the model, it would prevent a confusing and potentially contradictory mishmash of state laws and rules, some of which would likely place undue barriers between financial professionals and their clients and reduce Main Street Americans’ access to products, service and advice.

Additionally, NAIFA-MA member Josh O’Gara, CLU, ChFC, CFP, and NAIFA Policy Director Maeghan Gale testified at the National Council of Insurance Legislators (NCOIL) 2021 Summer Meeting in Boston to provide the producers’ perspective on the importance of independent contractor status for independent broker-dealers and financial advisors.

NAIFA’s engagement with groups like the NAIC and NCOIL affords the opportunity to provide insurance commissioners and legislators with input from the NAIFA community as they create model laws and regulations and encourage states across the country to adopt them.

In recent months, hard work by NAIFA state chapters has resulted in Alabama, Connecticut, Maine and Virginia passing laws or regulations based on the NAIC model. NAIFA had set a goal of encouraging 12 states to adopt the model by the end of the first half of 2021. The total now stands at 16.

Separately, in Washington state, NAIFA has coordinated an effort with association and corporate partners to survey members licensed to provide long-term care products and services in the state. The survey is studying the impacts on producers and consumers of the Washington Cares Trust Act, a publicly funded long-term care program. The results will help NAIFA better understand the current situation to develop better recommendations and solutions for Washington and other states considering similar programs.

The industry has historically welcomed a public-private option and we are hopeful that the various state legislatures contemplating publicly funded programs of their own will embrace knowledgeable suggestions from industry insurers, business processing firms, distributors, agents and advisors.