Just weeks after suspending sales of fee-based annuities in New York, Jackson National Life Insurance Co. has announced plans to reintroduce the financial product.
A number of companies expressed concerns about a new annuities regulation, insurance Regulation 187, which took effect on August 1. Jackson made a statement on their decision to return the product to the New York market via spokesman Patrick Rich, "Jackson has been working closely with the New York Department of Financial Services to resolve an issue involving a disclosure requirement within Regulation 187. As a result of these discussions, Jackson is planning on reintroducing its fee-based annuities in New York."
The regulation required insurance agents to recommend products that are in consumers' best interests. It also mandated that insures provide consumers with a comparison that shows the difference between fee-based and commission-based annuities. This caused insured to suggest that this might cause market confusion.
But now, insurers seem to feel more comfortable with the regulation after receiving some clarification, and are ready to re-enter the New York marketplace.
