Kansas First State to Drop Age Restrictions on Life/Annuities Sales

Insurance Commissioner Sandy Praeger has announced that Kansas is providing enhanced consumer protections by calling for an expansion of industry standards for the suitability of the sale of fixed and variable annuity products to include persons of all ages, not only those 65 and older.

The current Senior Protection in Annuity Transactions model regulation adopted by the National Association of Insurance Commissioners in 2003 extends suitability protection to consumers ages 65 and older.

Currently, eleven states have some version of the National Association of Insurance Commissioners’ model in place, with Kansas being the first to expand the age criteria to include all ages. What initially began as a way to protect senior citizens from deceptive sales practices will now be expanded to cover all consumers—regardless of age.

“Purchasing annuity products can be complicated and confusing for consumers of all ages,” said Praeger. “With the ever-expanding market of annuity products, it is important that everyone have an opportunity to purchase the products best suited to their needs.”

The American Council of Life Insurers endorses the action taken in Kansas and acknowledges the importance of having the foresight to move forward with an all-ages suitability regulation.

“The move by Kansas is seen by ACLI as action that re-affirms the Kansas Insurance Department’s longstanding reputation as being a
leader in consumer protection and insurance regulation,” said ACLI President/CEO Frank Keating.

Annuities will play a vital role in the financial plans of tomorrow’s retirees and will continue to grow as a way of providing Americans’ retirement security. It is critical that these products be matched with the needs of the consumer, officials said.