Support HB 1777: Setting a Best Interest Standard for Annuity Consumers!
HB 1777 by State Rep.Tom Oliverson, M.D. incorporates into Texas law a “best interest” standard of care for annuities. This will harmonize the standard of care for annuities across regulatory platforms.
To act in the best interest of the consumer, the agent is required to satisfy four obligations – the care, disclosure, conflict of interest, and documentation obligations.
To satisfy the four obligations, when making a recommendation the agent or company representative must:
- Obtain information to determine consumer’s financial situation, insurance needs, and financial objectives
- Have full understanding of the annuity options available for the consumer
- Exercise diligence, care, and skill in recommending an annuity that will effectively meet the consumer’s needs
- Document in writing any recommendation and the justification for such recommendation
- Disclose their role in the transaction, qualifications, compensation, and any material conflicts of interest.
NAIFA-Texas has partnered with TALHI (Texas Association of Life and Health Insurers) this legislative session to sprearhead this effort in the Texas Capitol. HB 1777 ensures consumers are receiving the products that are most beneficial and practical for their needs!
Support HB 1777: Setting a Best Interest Standard for Annuity Consumers!
HB 1777 by State Rep.Tom Oliverson, M.D. incorporates into Texas law a “best interest” standard of care for annuities. This will harmonize the standard of care for annuities across regulatory platforms.
To act in the best interest of the consumer, the agent is required to satisfy four obligations – the care, disclosure, conflict of interest, and documentation obligations.
To satisfy the four obligations, when making a recommendation the agent or company representative must:
- Obtain information to determine consumer’s financial situation, insurance needs, and financial objectives
- Have full understanding of the annuity options available for the consumer
- Exercise diligence, care, and skill in recommending an annuity that will effectively meet the consumer’s needs
- Document in writing any recommendation and the justification for such recommendation
- Disclose their role in the transaction, qualifications, compensation, and any material conflicts of interest.
NAIFA-Texas has partnered with TALHI (Texas Association of Life and Health Insurers) this legislative session to sprearhead this effort in the Texas Capitol. HB 1777 ensures consumers are receiving the products that are most beneficial and practical for their needs!