Washington Insurance Commissioner Mike Kreidler Announces the Adoption of Annuity-Related Rules Based on the National Association of Insurance Commissioners Model Act

The Office of Washington Insurance Commissioner Mike Kreidler has announced the adoption of two new annuity-related Rules based on the National Association of Insurance Commissioners Model Act.  The new Rules, summarized below, may affect how insurers do business in the state of Washington.

• R2011-23 Suitability in the Sale of Annuities, effective March 29, 2012, clarifies the requirements which producers must use to confirm that an annuity product is suitable for a consumer.  The Rule also requires a one-time, four-hour training course for any producer selling annuities in Washington.
• R2011-21 Senior Specific Certification and Professional Designation in the Sale of Life Insurance and Annuities, effective March 16, 2012, is to prevent insurance producers from using misleading and fraudulent marketing practices for life insurance and annuity products.  Specifically, producers are not allowed to use senior-specific designations when selling, soliciting, or providing advice in connection with these types of products.

Should you have any questions or comments, please contact Colodny Fass.