American Council of Life Insurers (ACLI) President and CEO David Chavern and National Association of Insurance and Financial Advisors (NAIFA)—Nevada Political Action Committee Chair Jarod Morgan issued the following joint statement on the best interest annuity rule approved recently by the Legislative Review Committee and supported by the Nevada Division of Insurance:
“The new rule approved today by the Legislative Review Committee and supported by Nevada Insurance Commissioner Scott Kipper greatly bolsters protections for consumers seeking lifetime income through annuities, the only financial product in the marketplace that can provide guaranteed income for life.
“Nevada becomes the 48th state to adopt the ‘best interest of consumer enhancements’ in the National Association of Insurance Commissioners (NAIC) Suitability in Annuity Transactions Model Regulation. More than 95% of the U.S. population live in a state with a best interest standard for annuity sales. These pro-consumer laws and regulations also align with the SEC’s Regulation Best Interest, providing retirement savers with important safeguards at the state and federal level.
“These measures offer a better way to protect consumers than the harmful fiduciary-only approach adopted by the U.S. Department of Labor, which limits access to guidance and information about choices for retirement. The regulation resurrects a failed 2016 regulation that, before it was vacated by a federal court, led to more than 10 million American workers’ accounts, with $900 billion in savings, losing access to professional financial guidance.
“More than 4.1 million Americans are turning 65 each year through 2027 and most will not have a defined benefit pension that provides a regular monthly income in retirement. It is critical that public policies expand and not limit people’s options for retirement.
“The best interest standard adopted in Nevada and other states ensures that retirement savers, particularly financially vulnerable middle-income Americans, can access information about different choices for long-term security in retirement.
“The U.S. Congress reaffirmed the importance of lifetime income when it passed legislation in 2019 and 2022 that made it easier for employers to include annuities in workplace retirement plans. With these enhanced state and federal consumer protections, millions of savers across the country can be confident that financial professionals must act in the consumer’s best interest when offering recommendations about annuities.
“We hope that someday soon all states will have these sensible protections in place so that all consumers can benefit from a best interest standard.”
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About ACLI: The American Council of Life Insurers (ACLI) is the leading trade association driving public policy and advocacy on behalf of the life insurance industry. 90 million American families rely on the life insurance industry for financial protection and retirement security. ACLI’s member companies are dedicated to protecting consumers’ financial wellbeing through life insurance, annuities, retirement plans, long-term care insurance, disability income insurance, reinsurance, and dental, vision and other supplemental benefits. ACLI’s 275 member companies represent 93 percent of industry assets in the United States.
About NAIFA: Founded in 1890 as The National Association of Life Underwriters, NAIFA is the oldest, largest, and most prestigious association representing the interests of financial professionals from every Congressional district in the United States. Our mission – empowering financial professionals and consumers with world-class advocacy and education – is the reason NAIFA has consistently and resoundingly stood up for agents and called upon members to grow their knowledge while following the highest ethical standards in the industry.
