According to the investmentnews.com the National Association of Insurance Commissioners’ joint executive committee plenary, “voted [recently] to adopt amendments to an annuity disclosure model that would give customers a detailed breakdown of product features.”
The National Association of Insurance Commissioners (NAIC) states on their website naic.org that they are, “…the U.S. standard-setting and regulatory support organization created and governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories.”
The vote was to amend “annuity disclosure model.” This rule change “would require that clients receive a buyer’s guide when purchasing an annuity.” In addition to the buyer’s guide, clients would also have to be given a “disclosure form that describes the contract, its benefits and how it works.”
There are additional changes that will be enacted through the vote. According to the investmentnews.com article, “The most prominent amendment to the disclosure model reg… is the addition of standards for annuity illustrations, which are provided to the customer to show how the product has performed.” These new illustrations will standardize what information purchasers will receive from sellers and also provide a wealth of information to the customers including a decade’s worth of performance information for each fixed indexed annuity.
The White Law Group is currently involved in many cases that involve different types of annuities. The firm is hopeful that these changes in regulations will help the investing public have more information about the investment prior to purchase to help ensure that the annuity is a suitable investment vehicle for them.
If you are concerned about an annuity that you have purchased and would like to speak to a securities attorney about your situation please call our Chicago office at 312-238-9650.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.