RJ and Makay

State insurance regulators voted yesterday to adopt amendments to an annuity disclosure model that would give customers a detailed breakdown of annuity product features.  The executive committee of the National Association of Insurance Commissioners (NAIC) voted unanimously to proceed with the amendments to the Annuity Disclosure Model Regulation, according to Jim Mumford, first deputy commissioner in Iowa’s insurance division.

The amended annuity disclosure model rule will require that clients receive a buyer’s guide when purchasing an annuity.  Carriers will be required to provide customers a disclosure form that describes the contract, its benefits and how the annuity works.  Customers will also receive an explanation of the impact of any riders, and information on the contract’s federal tax status and withdrawal penalties.