MILWAUKEE, Feb. 12, 2008 (PRIME NEWSWIRE) -- On February 4th, the Iowa Insurance Commissioner Susan Voss announced that the Iowa Insurance Division has embarked on a project to strengthen disclosure information pertaining to fixed annuity products purchased by Iowa consumers. The Iowa Insurance Division and the American Council of Life Insurers (ACLI) have agreed to participate in a joint initiative designed to ensure that consumers receive all the information they need before they purchase two popular retirement planning products.
The Division has issued Bulletin 08-01 allowing companies to provide the information in the manner set forth in the ACLI's Annuity Disclosure templates in satisfaction of the requirements of the Iowa Annuity disclosure Regulations. Iowa will seek information from consumers receiving the disclosure documents about the effectiveness of the disclosure document. During and at the end of the period, the ACLI, NAVA and the Iowa Insurance Division will evaluate the template forms and make whatever modifications are needed to provide even better more uniform information to the consumer. NAFA encourages all states to join the initiative.
NAFA commends the Iowa Insurance Department and the American Council of Life Insurers (ACLI) on its commitment and efforts to provide consumers with the important information they need to make suitable decisions on their retirement planning objectives. NAFA believes all consumers should enjoy a safe and informed environment in which to choose financial products that will effectively achieve their retirement goals. This can be achieved with uniform suitability and disclosure standards and consistent application of the standards by the industry to ensure compliance.
NAFA, The National Association for Fixed Annuities, was created to foster a better understanding of fixed annuities, including declared-rate, indexed-rate and immediate payout annuities. NAFA's membership is open to insurance carriers, marketing organizations, producers, brokers, consultants, vendors and consumers who promote, distribute or purchase fixed annuities. NAFA's insurance company members represent over 90% of all fixed annuity sales through independent distribution (i.e., non-bank). NAFA is committed to addressing the concerns of regulators, policymakers and consumers. Improving consumer confidence in fixed annuities is NAFA's top priority
NAFA is the only association dedicated exclusively to fixed annuities and Kim O'Brien, Executive Director, is available to answer any questions regarding these unique insurance products at 888-884-NAFA.
NAFA members may be viewed at www.nafa.us.