VT | The Vermont Department of Financial Regulation has announced the issuance of Regulation I-2023-01 Suitability in Annuity Transactions, effective July 5, 2024.
Purpose
1. The purpose of this rule is to require producers, as defined in this rule, to act in the best interest of the consumer when making a recommendation of an annuity and to require insurers to establish and maintain a system to supervise recommendations so that the insurance needs and financial objectives of consumers at the time of the transaction are effectively addressed.
2. Nothing herein shall be construed to create or imply a private cause of action for a violation of this rule or to subject a producer to civil liability under the best interest standard of care outlined in Section 6 of this rule or under standards governing the conduct of a fiduciary or a fiduciary relationship.
3. This rule sets forth the standards for the sale of annuities in Vermont and should be read with the requirements of 8 V.S.A. § 4724(16) and other applicable Vermont laws including the Insurance Trade Practices Act, 8 V.S.A. §§ 4721 et seq. Nothing precludes an insurer from exceeding the requirements of this rule.
4. A recommendation to purchase or sell products defined as securities under the Vermont Uniform Securities Act is the offering of investment advice. A person who offers investment advice must be registered with the Vermont.