Annuity Disclosure Regulation News

On October 12, 2011 the NAIC adopted amendments to the Annuity Disclosure Model Regulation #245. Among other things, the amended Model:

1. Provides uniform guidance on developing consumer disclosures to inform consumers about how annuity products work;
2. Requires that consumers receive a buyer’s guide when purchasing an annuity;
3. Improves requirements with respect to illustration development; and
4. Requires that customers be provided with an explanation of any riders, along with penalties that apply to withdrawals, and well as information about the tax treatment of annuities.

Iowa has adopted these changes to be effective April 11, 2012.

Please stay tuned for news updates on this topic, as well as impact on other jurisdictions.