Two leading groups serving the insurance industry – the American Council of Life Insurers (ACLI) and the National Association of Insurance and Financial Advisors (NAIFA) – commended North Dakota Gov. Doug Burgum for approving the state’s annuity best interest law.
“Introduced by North Dakota Rep. George Keiser and Sen. Jerry Klein, the new law adds momentum to the drive for a national standard that safeguards the best interest of consumers regardless of where they live,” said Susan Neely, president and CEO of ACLI, and Lyle Kraft, North Dakota president at NAIFA. “Eight other states have adopted similar rules that closely track with the ‘best interest of consumer enhancements’ in the National Association of Insurance Commissioners (NAIC) Suitability in Annuity Transactions Model Regulation. They also align with the SEC’s Regulation Best Interest. Unlike a fiduciary-only approach that limits choices for consumers, these measures offer strong state and federal protections and make sure savers, particularly financially vulnerable middle-income Americans, are not discriminated against and have information about options for long-term security through retirement.”
They said the bill ensures that financial professionals act in the consumer’s best interest.
“The U.S. Congress reaffirmed the importance of lifetime income when it passed legislation in 2019 making it easier for employers to include annuities in workplace retirement plans. These protections safeguard consumers while also ensuring that middle- and working-class families will maintain access to practical and easy-to-understand financial information,” they added. “We hope other states take similar action as North Dakota on behalf of retirement savers.”