Speak with a Registered Agent: 1-866-223-2121

Speak with a Registered Agent: 1-866-223-2121

Suitability Standards for Annuities


One of the biggest concerns that people have with annuities is the problem of unethical advisors selling investors products that aren’t right for them.  The National Association of Insurance Commissioners (NAIC) approved regulations last year to protect investors from such practices.  The Suitability in Annuity Transactions Model Regulations prevent advisors from selling senior citizens annuities that are not suitable for them.  When the model was approved, the NAIC’s goal was for every state in the U.S. to adopt the practices and monitor their financial transactions.  New York and California are coming on board now and adopting the suitability regulations in their states.

Annuities are excellent investments that provide a guaranteed lifetime stream of income to investors.  They have become increasingly popular during these difficult economic times where many older investors have lost a lot of money in the stock market.  It is important to compare annuities and figure out what is best in each individual situation though, especially for senior citizens and others close to retirement.  The California Department of Insurance plans to set up a supervision system for insurers selling products to investors age 65 and up.  In New York, the State Insurance Department will prohibit salespeople who are commission-based from using professional titles that market them as experts when they are not.  Senior citizens tend to be more trusting of these titles and can be coerced into an investment that may not be suitable.  That is why these suitability regulations are so important.

For more information about the product mentioned in this article contact us here:

Newest Blog Posts

Information Request Form

If you have questions or would like more information, please complete this form and a licensed professional will be happy to help. For the fastest response, please select 'Phone' as your Contact Preference.

By providing your information and clicking 'Submit' above, you acknowledge that you have read and agree to this site's privacy policy. You also provide your consent to be contacted at the email address or phone number provided above (including any wireless number) by licensed agents or representatives from or on behalf of AFYI Holdings Group, LLC and other companies to provide the information requested and/or offer annuities or financial products. You understand that these calls or SMS messages may be generated using an automated telephone dialing system, a pre-recorded message, or artificial voice. Consent to receive such messages is not a condition to purchase any goods or services. You may opt out at any time by following the instructions in the messages you receive.  Receiving quotes and information through our website is free, and you are under no obligation to purchase any goods or services as a result of this request. You affirm that you are the subscriber of the provided telephone number or that the subscriber authorized you to provide the number. Message and data rates may apply. AFYI Holdings Group, LLC is committed to respecting your privacy and adhering to all applicable laws and regulations, including the Telephone Consumer Protection Act (TCPA).