IMSA introduces clearinghouse

The Insurance Marketplace Standards Association today introduced a clearinghouse system to help life insurance companies get certifications of supervision of annuity suitability. The system works with the National Association of Insurance Commissioners’ “Suitability in Annuity Transactions Model Regulation,” which imposes a suitability requirement on the purchase and exchange of annuities. The rules also require companies to get annual certifications from third-party distributors with suitability supervisory duties. Thirty states have already adopted some form of the NAIC’s rules. IMSA’s clearinghouse will provide electronic storage and transfer of the annual certifications, and the service will be available to all U.S. insurance companies and third-party distributors. The service will be available starting Jan. 1, 2008.