April 1, 2008

Iowa Is First State To Use Improved Annuity Disclosures

The Iowa Division of Insurance will be the first U.S. state regulator to implement an initiative designed to improve consumer understanding of fixed and indexed annuities.

Reported by Rebecca Moore

The regulator is joining with the American Council of Life Insurers (ACLI) and NAVA, the Association for Insured Retirement Solutions, to promote the use of a new annuity disclosure template and disclosure documents that were created in response to an annuity disclosure model regulation developed by the National Association of Insurance Commissioners. The materials will provide clear answers to questions about fees, expenses, and benefits, including what is guaranteed in an annuity contract and what is not. The disclosure also will explain how to get income from an annuity, how the value grows, and how interest is calculated and when it is credited.