In 2020, the Securities and Exchange Commission (SEC) adopted a "best interest" standard of care for the sale of securities (e.g. stocks, bonds, mutual funds) to consumers. Under current Texas law there is a disparity in the standards of care for the sale of different annuities. HB 1777 incorporates into Texas law a "best interest" standard of care for annuities similar to the standard adopted by the SEC last year. This will ensure consumers are being sold annuities that will benefit them. To ensure this takes effect, agents will be required to satisfy the care, disclosure, conflict of interest, and documentation obligations. This legislation provides more consistency across annuity sale integrity to ensure consumers are getting the most beneficial products. Join NAIFA-Texas and TALHI in support of this HB 1777 by Rep. Tom Oliverson, MD!

An annuity is a contract between you and an insurance company in which you make a lump-sum payment or series of payments and, in return, receive regular disbursements, beginning either immediately or at some point in the future. Typically annuities provide a stream of income for retirees. Currently, under Texas law, there is a disparity in the standards of care for the sale of different annuities. HB 1777 by Rep. Tom Oliverson will incorporate a "best interest" standard that will harmonize the standard of care for annuities regulatory platforms. Under this bill, insurance agents must satisfy four obligations when selling annuities: the care, disclosure, conflict of interest, and documentation oligations. Thus, ensuring that the consumer will be receiving the annuity that is most beneficial. Please join NAIFA-Texas and TALHI in support of HB 1777!