Customers generally purchase annuities to ensure a monthly payback during retirement. However, regulators see the need for more uniform regulation to make sure products are well-suited to the customer.
Gov. Mark Dayton vetoed a bill that he said does not provide the necessary protections for seniors or enough accountability for insurance companies.
Rep. Joe Hoppe (R-Chaska), who sponsored the bill with Sen. Roger Chamberlain (R-Lino Lakes), said it would enact 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.”
However, in his veto letter, Dayton restated his earlier objection to the legislation.
“I made it very clear to the bill’s authors and interested parties that I would not support this legislation unless it: (1) required meaningful, independent, elevated review by insurance companies of the suitability of long-term deferred annuities for seniors in certain circumstances; and (2) limited the FINRA exemption, which would provide a huge loophole for insurers regarding annuities sold by a securities broker to senior citizens.” FINRA stands for the Financial Industry Regulatory Authority.
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