Annuity Regulations

Annuity Regulations

Whether you are considering purchasing an annuity or simply want to learn more about the regulatory landscape, this video will provide valuable insights into the world of annuity regulations.

How Annuities Are Governed

In the United States, annuities are governed by both federal and state regulations.

These regulations are designed to protect consumers and ensure that insurance companies and other entities selling annuities are operating in a fair and transparent manner.

At the Federal Level

Annuities are regulated by the Securities and Exchange Commission

(SEC) and the Financial Industry Regulatory Authority (FINRA).

The SEC regulates variable annuities, which are considered securities, while FINRA regulates the broker-dealers and financial professionals that sell annuities.

At the State Level

Each state has its own insurance department, which regulates the sale of annuities within that state.

This includes reviewing and approving annuity contracts, as well as ensuring that insurance companies and agents comply with state laws and regulations.

At the State Level

One of the key regulations at the state level is the "suitability" standard.

Agents and companies are required to disclose all fees and charges associated with the annuity,

as well as any surrender charges or other penalties that

may apply if the annuity is canceled or withdrawn early.

This means that insurance agents and companies must recommend annuities suitable for a particular client's needs and financial situation.

In Conclusion

If you are considering purchasing an annuity, it is important to familiarize yourself with these regulations and work with a reputable insurance agent who can help guide you through the process.