2010-06-10 22:19:02 -

WASHINGTON, DC -- (Marketwire) -- 06/10/10 -- AARP and The Insurance Marketplace Standards Association (IMSA) convened a Summit Meeting in Washington, D.C. today entitled "Retirement Security in a Regulated Marketplace: Annuities in 2010 and Beyond." State and federal regulators, consumer advocates, life insurance companies, and those who sell and distribute products gathered to address suitability issues and consumer protection challenges as a changing economic and regulatory landscape is navigated.



The needs of consumers were central to these discussions. "AARP is very focused on annuity products being sold to older adults," said T. Ryan Wilson, Strategic Policy Advisor at AARP's Public Policy Institute, "as many Americans rely on annuities and other life insurance products as part of their financial planning. AARP strongly supports the work IMSA is doing in the insurance marketplace."





The Summit explored, among other issues, the recent revision to the NAIC Suitability in Annuity Transactions Model Regulation. "Better understanding and clarification of the intent of regulatory requirements among all industry stakeholders results in better outcomes for consumers," said Thomas Sullivan, Connecticut Insurance Department Commissioner and NAIC Life Insurance and Annuities (A) Committee Chair.



Supervision and monitoring concerns were also discussed. "To expect that every company will monitor and oversee suitability in the exact same way is unreasonable," said Roger Sevigny, New Hampshire Insurance Commissioner and NAIC Market Regulation and Consumer Affairs (D) Committee Chair, "because every insurer conducts business differently. This is why understanding of a process overview approach, rather than the historically-based transactional-specific approach, is vital to annuity suitability moving forward."



The impact this new regulation has on producer training was addressed as well. "The revised NAIC Suitability in Annuity Transactions Model Regulation provides a significant training opportunity for insurers," said Jim Mumford, Iowa Deputy Insurance Commissioner. "Understanding of the revised regulation and the impending changes to the NAIC Market Conduct Handbook are critical to helping insurers understand how to apply the regulation."



"The commitment of state insurance regulators to strengthen suitability standards is advanced by both the revised model regulation as well as the participation in today's Summit," added Joel Ario, Pennsylvania Insurance Commissioner. "I applaud AARP and IMSA for advancing only suitable sales of annuity products to consumers."



"Americans of all ages in all 50 states need to be treated fairly," said IMSA President & CEO, Brian Atchinson, "and AARP and IMSA are working together to ensure that insurance industry standards remain high."



Participants also included representatives of the U.S. Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA) and the U.S. Department of the Treasury.



IMSA is the premier standards-setting and compliance solutions organization for the life insurance, annuity and long-term care insurance marketplace for individually sold products. Qualified companies commit to maintaining high ethical market conduct standards and to being fair, honest, and open in the way they advertise, sell and service their products. For more information and a list of IMSA-qualified companies, visit www.IMSAethics.org : .




For information, contact:
Jennifer Kalita
240-744-3021