Important Announcement: NAIC Adopts
Best Interest Regulation
Best Interest Regulation
This past week the NAIC formally adopted a model “best interest” regulation which
will impact distribution of annuity products. We anticipate states will begin adopting
this regulation in coming months, and both carriers and agents will need to adjust to
new compliance requirements that go beyond suitability.
The new model regulation requires agents act in the “best interest” of clients without
placing their own or the insurer’s financial interests ahead of client interests. An agent
acts in the best interest of the client if the agent satisfies specific obligations regarding
care, disclosure, conflict of interest, and documentation. Each obligation is spelled out
in the regulation:
• Care: An agent must exercise reasonable diligence, care, and skill to know the
client’s situation, understand available options, and recommend options that
effectively address the client’s situation, needs, and objectives.
• Disclosure: An agent must disclose scope and terms of the client relationship,
whether the agent is authorized to sell certain products, whether the agent sells for
one or more insurers, and a description of compensation including the client’s right
to request more details about cash compensation.
• Material Conflict of Interest: An agent must identify and avoid or reasonably
manage and disclose material conflicts of interest, excluding compensation, such
as ownership interest in an insurer.
• Documentation: An agent must make a written record of the recommendation and
basis for the recommendation.
Under this new model regulation, an insurer must establish and maintain a system
of supervision reasonably designed to achieve compliance by both the insurer and
its agents. Accordingly, as individual states adopt these new requirements, F&G
email@example.com • 800.445.6758 • fglife.com
will be providing further guidance on what is required of agents and information on
modifications to our business procedures including any changes to our existing
suitability acknowledgment form.
Although we are still analyzing the model regulation, generally we anticipate changes
to our suitability program will be minimal, but there will be additional disclosure
requirements and other enhancements necessary to satisfy the new law. Click here
for a preliminary copy of the model regulation for agents interested in beginning to
familiarize themselves with the new rule.
F&G recognizes our agents have always looked out for the financial well-being of
consumers so we anticipate any changes will be incremental and the overall transition
should be straightforward. Please watch for future announcements as states begin
adopting this new regulation.
National Life Group – Feb 13, 2020
403(b)/457(b) Certified Training is
Coming to a City Near You!
|We are excited to be in Cherry Hill the first week of March! If you are looking to make the most of your annuity business and to maximize your efforts in the 403b/457b marketplace, this is a must attend class!
||March 5, 2020
||Cherry Hill, New Jersey
|Who Should Attend?
• Agents licensed and appointed with National Life Group.
• Agents with less than two years experience in 403(b)/457(b) sales.
• Agents in good standing with National Life Group.
• Agents interested in learning more about getting into
the 403(b)/457(b) marketplace.
This one day class is jam-packed with valuable insights on market trends, product innovations, and industry regulations! Our expert instructors will show you how to leverage your knowledge to accelerate your business! This Certified class doesn’t stop with the basics – this class takes a deep dive into advanced sales techniques, demonstrates how to leverage relationships and create business opportunities and covers multi-stage client servicing!
This is what agents are saying about this class:
“Very informative training!”
“Fun to participate and lots of good information.”
“This training has really evolved and is filled with actionable sales ideas!”
With curriculum this exciting, classes will fill up fast! So, don’t waste a minute! Register now!