L&HPennsylvaniamedium
Pennsylvania's Act 99 of 2021 (40 P.S. § 627-3) imposes a best-interest standard on annuity recommendations. Which set of obligations does the producer owe the consumer?
AFiduciary, indemnification, and arbitration
Care, disclosure, conflict-of-interest, and documentation
CSuitability and rescission only
DRisk transfer, underwriting, and reinsurance treaty administration
Why this is the answer
Pennsylvania adopted the NAIC best-interest revision of the Suitability in Annuity Transactions model by statute, in Act 99 of 2021 (effective June 20, 2022), which amended the Suitability of Annuity Transactions law at 40 P.S. § 627-1 et seq. The producer must satisfy four obligations on every annuity recommendation: a care obligation (reasonable diligence and skill), disclosure of cash and non-cash compensation, identification and management of material conflicts of interest, and documentation of the basis for the recommendation.
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