Supporters of simplified disclosures for variable annuities may get a boost from a proposal that state insurance regulators will soon consider.
The National Association of Insurance Commissioner's life insurance and annuities committee is in coming weeks likely to approve a new working group that will consider updating model disclosure regulations for annuities. In its deliberations, the working group may include variable products as well as annuity "illustrations."
The current NAIC model disclosure regulation, adopted in 1999, applies only to fixed and individual annuities. It does not cover variable annuities and illustrations, information packets the life insurance industry often gives clients to show how much annuities and policies are likely to pay under different scenarios.
Annuities
