(PRWEB) June 26, 2011
The culmination of nearly a year of research and collaboration has resulted in an important clarification being issued today by the Iowa Insurance Division regarding licensing requirements and permitted activities for insurance-only licensed professionals and securities-only licensed professionals. The National Association for Fixed Annuities is grateful to the Iowa Insurance Division for its efforts to clarify what had proven to be a gray area in insurance and securities regulation, leading to some confusion in the marketplace regarding permissible roles provided by licensure.
NAFA is pleased to have played a role in providing important input to the insurance division on these issues. In March 2010, NAFA’s Board of Directors authorized the compilation of a working group of its Government Relations Committee to research these issues as they related to insurance licensure and suitability requirements. NAFA and its carrier members have been working with the Iowa Division of Insurance and Deputy Commissioner Jim Mumford since last July to provide input and research to aid in the clarification of these issues.
Today, the Iowa Insurance Division released its bulletin. The full Bulletin can be viewed at:
In a communication to NAFA President & CEO Kim O’Brien, Deputy Director Mumford expressed his appreciation to NAFA for its help and input provided in this long process to provide better direction to the insurance industry on this issue.
NAFA’s working group spent several months compiling research, legal analysis, documentation and input to the Iowa Insurance Division.
A key mission for NAFA is to provide education to insurance professionals and the fixed annuity industry to ensure suitability for consumers. This bulletin from the Iowa Insurance Division provides important clarification.
Some of NAFA activities over the past several months have included:
- Created a document that provided a resource for understanding the issue and how different states have treated the issue.
- Worked with carriers to create a Principle Paper on Fixed Annuity Marketing and Suitability Review for Insurance-Only Agents, which was made available to fixed annuity professionals.
- Met with key regulators to discuss ways to communicate and train agents and marketing organizations to help them meet state requirements.
- Provided input to regulators on source of funds issues, distinctions with sales practices, and consumers’ interests.
- Provided educational webinars to insurance professionals to provide education on suitability issues.
NAFA, the National Association for Fixed Annuities, is a national trade association exclusively dedicated to promoting the awareness and understanding of fixed annuities – including income, declared rate, market value adjusted and indexed. NAFA is the only association whose sole purpose is advocating for the fixed annuity product and educating regulators, legislators, consumers, members of the media, industry personnel, and distributors about fixed annuities and their benefits to retirees and those planning retirement. NAFA’s membership of fixed annuity carriers and independent marketing organizations (or field organizations) represents over 200,000 agents and registered representatives selling fixed annuities. NAFA was founded in 1998 and is headquartered in Milwaukee, Wisconsin.
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