A quick glance at Missouri’s map reveals its biggest cities rest on its eastern (St. Louis) and western (Kansas City) borders. The tourist mecca of Branson sits near Missouri’s southwest corner while smack dab in the middle is the state capital of Jefferson City, population 43,228.
What do these different places have in common?
They’re all covered by a new consumer protection rule that will protect every resident of the Show Me State.
Missouri recently adopted a rule promoted by Department of Commerce and Insurance Director Chlora Lindley-Myers that incorporates the enhanced consumer protections in the National Association of Insurance Commissioners (NAIC) updated model regulation on annuity transactions. Missouri became the 46th state to adopt these measures.
The new rule enhances the standards financial professionals must follow and protects consumers’ access to, and information about, annuities, the only financial product in the marketplace that can provide guaranteed income for life. Thanks to this important consumer protection rule, every Missourian will be in a strong position to achieve financial security throughout retirement.
All told, more than 90% of U.S. residents now live in a state that has adopted a best interest standard. Building on this momentum, the remaining states are considering related measures to further protect their citizens.
The actions in the states closely align with the Securities and Exchange Commission’s Regulation Best Interest. And, unlike the Department of Labor’s ill-advised fiduciary-only proposal, these harmonized measures ensure savers, particularly financially vulnerable middle-income Americans, can access information about annuities and information about other options for their retirement savings.
The DOL’s proposal is similar to its failed 2016 regulation that, before it was struck down by a federal court, resulted in more than 10 million American workers’ accounts, with $900 billion in savings, losing access to professional financial guidance. A recent survey shows that retirement savers overwhelmingly want the freedom to work with any kind of financial professional who is offering products and services that meet their needs.
With these enhanced state and federal consumer protections, savers can be confident that financial professionals must act in the consumer’s best interest when offering recommendations about annuities. The U.S. Congress reaffirmed the importance of lifetime income when it passed legislation in 2019 and 2022 to make it easier for employers to include annuities in workplace retirement plans and simpler for savers and retirees to utilize annuities.
More than 4.1 million Americans are turning 65 each year through 2027. Now is definitely not the time to limit people’s options for retirement.
We look forward to the remaining states that lack this best interest consumer protection joining Missouri and the rest of the country before long. Then all Americans working to protect their family’s financial future will be able to benefit from a best interest standard.
Melissa Young is Regional Vice President, State Relations at the American Council of Life Insurers (ACLI). She is responsible for state legislative and regulatory affairs in Colorado, Missouri, New Mexico, North Dakota, Oklahoma, and Texas. Melissa leads ACLI’s advocacy team on issues related to consumer disclosures, corporate division/insurance business transfers, and market conduct.
NAIFA-MO President Craig Wright is from Springfield, Missouri.
