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On August 16th, the Texas Department of Insurance (TDI) proposed a rule about the forms an agent must provide to a consumer before or when recommending or selling an annuity. Agents can use the hyperlink above to review the rule and submit comments before September 27, 2021. This rule falls in line with the Texas adoption of NAIC's Best Interest Standard (HB 1777). 

The proposal includes:

      • A form mandated by Insurance Code §1115.0516(2) for use by agents if a consumer does not provide the agent some or all of the information needed to decide whether the annuity effectively meets the consumer's needs at the time of a recommendation or sale of an annuity
      • A form for agents use if a consumer decides to enter into an annuity transaction that is not based on agent’s rec.
      • Forms adopted by NAIC in it’s Suitability model
There is an option to use TDI developed forms that mirror NAIC model forms.
Further, this rule allows industry flexibility to develop their own disclosure forms that meet the statutory requirements and plain language standards, consistent with the federal government's plain language website.

 

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