Date: May 7, 2008
For more information contact: Mikaela Reck, Public Information Officer, (608) 267-9336 or mikaela.reck@wisconsin.gov

National working group modeled after Wisconsin annuity committee

Madison, WI—Recent national attention has focused on the problems surrounding the sales of annuity products. The National Association of Insurance Commissioners (NAIC) has created a Suitability of Annuity Sales Working Group to proactively work to minimize unsuitable annuity sales The Working Group is modeled after Wisconsin's Annuity Sales Suitability Advisory Committee.

"Unsuitable sales of annuities is an issue insurance departments in every state are dealing with," said Sean Dilweg, Wisconsin Insurance Commissioner and chair of the new Working Group. "By pushing the Wisconsin committee to a national level we can address all facets of the problem and work on supervision standards."

The NAIC Working Group will review current insurance industry practices in the supervision of its producers' sales of annuities, along with some of the abusive sales tactics associated with these products, and work to recommend regulatory standards for future sales.

Wisconsin's Annuity Sales Suitability Advisory Committee will create a set of standards to be used at the national level. These standards will serve as a framework for the NAIC Working Group.

"This is an excellent recognition of the work we're doing here in Wisconsin," said Kim Shaul, Wisconsin Deputy Insurance Commissioner. "We look forward to building on the work our committee has done in the state and anticipate interaction between the two committees."

The Working Group will hold an open organizational conference call on Monday, May 12, 2008, from 1:30-3:00 CST. The purpose of the call is to discuss the Working Group's charge and to discuss and develop a work plan for completing that charge. To participate on the call, interested parties should call 1-800-967-4633 a few days prior to the date of the call to register with Chorus Call and then on the day of the call dial 412-317-6715 and ask for the NAIC Annuity Sales Working Group call.

Created by the Legislature in 1871, Wisconsin's Office of the Commissioner of Insurance (OCI) was vested with broad powers to ensure that the insurance industry responsibly and adequately met the insurance needs of Wisconsin citizens. Today, OCI's mission is to lead the way in informing and protecting the public and responding to its insurance needs.