Speaking on behalf of the National Association of Insurance Commissioners, NAIC President-Elect and Kansas Insurance Commissioner Sandy Praeger testified before the U.S. Senate Select Committee on Aging on the qualifications of investment advisors who make recommendations to seniors regarding the investment of their money.
“There is no doubt that abuses exist,” Praeger said. “State and federal officials entrusted with the responsibility of protecting consumers must remain vigilant in their oversight of annuity sales.”
Praeger’s testimony outlined the steps taken by state insurance regulators to respond to the growing number of complaints in the categories of suitability, agent handling and misrepresentation over the past three years.
“Annuities are complex financial instruments,” Praeger said. “This is why the NAIC continues to track trends and provide insurance regulators and consumers with the tools they need to identify and stop unfair practices.”
Praeger also highlighted the Senior Protection in Annuity Transactions Model Regulation adopted by the NAIC in 2003 and amended in 2006. She outlined the duties and responsibilities called for under the model for insurers and insurance producers to ensure that a product is suitable for the consumer, as well as establishing and maintaining a system of supervision.
To view the full text of Praeger’s testimony, click here.
About the NAIC
Headquartered in Kansas City, Missouri, the National Association of Insurance Commissioners (NAIC) is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and the five U.S. territories. The NAIC’s overriding objective is to assist state insurance regulators in protecting consumers and helping maintain the financial stability of the insurance industry by offering financial, actuarial, legal, computer, research, market conduct and economic expertise. Formed in 1871, the NAIC is the oldest association of state officials. For more than 135 years, state-based insurance supervision has served the needs of consumers, industry and the business of insurance at-large by ensuring hands-on, frontline protection for consumers, while providing insurers the uniform platforms and coordinated systems they need to compete effectively in an ever-changing marketplace. For more information, visit NAIC on the Web at: http://www.naic.org/press_home.htm.
