WI | The Wisconsin Office of the Commissioner of Insurance (OCI) has issued a bulletin summarizing a recently enacted law that affects the insurance industry.
Best Interest Law (2021 Wis. Act 260)
On April 15, 2022, Governor Evers signed 2021 Wis. Act 260 which adopted the best interest standard for annuity sales based on the National Association of Insurance Commissioners (NAIC) model law. A copy of the Act may be found here. The law revises the annuity suitability standards found in Wis. Stat. §628.347 to provide greater protections for consumers who purchase annuity products. The NAICs FAQs related to the model law and its development may be found here.
The new law requires that when recommending the sale of an annuity, insurance intermediaries act in the best interest of the consumer and not place their own financial interests ahead of those of the consumer. An insurance intermediary has acted in the best interest of the consumer if the intermediary satisfies the Act’s care, disclosure, conflict of interest, and documentation obligations.