NAIC Model Regulation - NAIC Got It Wrong

[Norwayguy]

I recieved the following from one of my Annuity carriers in response to NAIC Model Regulation which has not been adopted by every state (yet). Below is a summary of the changes:

Annuity Continuing Education(CE) Training & Tracking

Regulation - All insurance producers in state with an annuity suitability CE requirement must complete, at minimum, an approved CE training course on selling annuities.

I guess this is fine and not that big a deal

Product-Specific Training and Tracking

Regulation - Prior to soliciting business, all insurance producers in the states that have adopted the regulation must take product-specific training for each deferred and income annuity that they sell. Each Carrier must provide this product-specific training and track completion prior to accepting new business

This is just more hassle but okay, I've had carriers require training before selling FIAs, I just hope they get it right, I've had them lose my certifications before. Also many times prior to appointment and many won't appoint without business you lack access to the carriers website so how will training be accomplished?

FINRA-Like Review of Fixed Deferred and Immmediate Annuities

Regulation - All fixed and income annuity business in states that adopt the new regulation must recieve two formal suitability reviews. The first suitability review is completed by the insurance producer or advisor who signs the application, just as it is done today. A second review - "A FINRA-Like review" - will also be required.

I guess I'm a little freaked out by NAIC calling anything FINRA like after FINRAs attempt to take over FIAs, also of concern is that the carrier that sent me this info will be using their affiliated B/D to preform the FINRA-like review.

 

[insuranceexec]

The power of self-regulation. Go figure.