Annuity assurance proposed

Customers generally purchase annuities to ensure a monthly payback during retirement. However, with the increasing number of baby boomers reaching retirement age, regulators see the need for more uniform regulation to make sure products are well-suited to the customer.

Rep. Joe Hoppe (R-Chaska) sponsors HF1134, which, as amended, was passed by the House 125-6 April 2. It now awaits action by the full Senate. Sen. Roger Chamberlain (R-Lino Lakes) is the Senate sponsor.

Hoppe said the bill would enact a model regulation adopted by the National Association of Insurance Commissioners, and would make Minnesota’s law “the strongest in the country — one that will be model legislation for other states.”

According to the nonpartisan House Research Department, the bill’s focus is on requiring that an annuity product recommended to a consumer by an insurance agent be suitable for that consumer. It adds a new requirement that the insurance company independently review the agent’s suitability determination.