Running Start Webinar Takeaways

Carriers, be prepared in 2023! Check out these regulatory updates from our annual webinar.

Running Start 2023 Billboard

What you'll learn

SILA & Vertafore’s Running Start on-demand webinar investigates regulatory and technological changes that will impact insurers’ compliance and distribution channels in 2023.

Check out these industry trends and regulatory updates from our annual webinar to help you be prepared.

Regulations update: Annuity best interest

The Highlights

  • Since the National Association of Insurance Commissioners' (NAIC) 2020 update of the model act for annuity suitability, more states have passed legislation requiring recommendations by agents and insurers be in the best interest of the consumer.  
  • Tennessee is the most recent state to adopt a best interest requirement, passing in January 2023.
  • Florida and Washington, D.C. are the only remaining entities that have not adopted some form of annuity training requirements.

 

Best Interest map

Securities education adoption

Securities Education Adoption Map

The Highlights

  • The North American Securities Administrators Association's Investment Advisor Representatives (IARs) CE Model Rule defines the parameters for establishing continuing education programs for IARs.
  • Reps are required to attain 12 credits each year, which must include:
    - 6 credits of Ethics and Professional Responsibility courses (at least 3 of which must be Ethics), and
    - 6 credits of Products and Practice courses  

IARs Continuing Education Model Rule adoption:

  • Adopted and implemented: Arkansas, Kentucky, Maryland, Michigan, Mississippi, Oklahoma, Oregon, South Carolina, Vermont, Wisconsin, Washington D.C.
  • Plan to adopt in 2023, implement in 2024: Nevada, Rhode Island
  • Considering adoption: California, Colorado, Tennessee 

Privacy and security legislation tracker

The Highlights

  • The International Association of Privacy Professionals (IAPP) reports that 78% of states have considered comprehensive consumer privacy legislation since 2018, with more states passing laws each year.
  • Indiana, Iowa, Kentucky, Mississippi, New Jersey, New York, Oklahoma, and Tennessee have introduced legislation.

 

Privacy and Security chart
IAPP US State Privacy Legislation Tracker

 

Web EFT sunset

The Highlights

  • FINRA plans to sunset current WebEFT subscription service no earlier than the first quarter of 2024.  
  • Securities firms currently subscribed to WebEFT should be preparing to migrate to the new FINRA API platform.
  • Firms can also work with Vertafore to help ensure a seamless transition.

SSN requirement removal 

The Highlights

  • States have been gradually removing the requirement to use a producer’s Social Security Number for electronic transactions.  
  • Many instead require a National Producer Number (NPN).

Most states have made the change; the rest are expected to add requirement by Q1 2023. 

  • Maryland began requiring NPN on January 6, 2023.
  • Puerto Rico and the Virgin Islands will begin requiring NPN on February 10, 2023.
  • Delaware and Kentucky also expected to required NPN later in Q1 2023. 

State system and uniformity updates 

  • No major state system or uniformity updates have been announced for 2023
  • Subscribe to the SILA Digest or use e-PAL to stay up to date on future regulatory changes. 

For the full overview of insurance industry updates, watch the full 2023 Running Start webinar on demand. 

Posted February 9, 2023 in Blog

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