Iowa Insurance Commissioner Bulletin: June 24, 2011

(2011) Iowa Insurance Commissioner Bulletin: June 24, 2011. Insurance Division (Commerce)

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PDF bulletin 11-S-1 re securities licensed persons June 2011.pdf File Size:66kB

Abstract

Since Iowa adopted a rule (191 Iowa Administrative Code rules 15.68-15.73) substantially similar to the April 2010 Suitability in Annuity Transactions Model Regulation of the National Association of Insurance Commissioners (“NAIC”), questions have arisen as to where the line is drawn between providing insurance advice and securities advice. The answers to these questions have become increasingly important because suitability laws at the state and federal level have evolved to the point where any recommendation to a consumer of either an insurance product or a securities product requires an extensive financial analysis of the consumer’s financial affairs and a discussion of broad financial trends. How information received from the consumer is applied will be different depending on whether it is an insurance transaction or a securities transaction because of the differing requirements of insurance and securities laws.