RICHMOND — The State Corporation Commission (SCC) has adopted new rules developed to strengthen consumer protection in the sale of annuities, and revised rules governing replacement transactions involving life insurance and annuities. The new and revised rules take effect in Virginia on April 1.

The new rules addressing suitability in the sale of annuities establish certain guidelines for insurers and agents to follow in presenting annuity products to consumers to better match the consumer’s insurance needs and objectives to an appropriate annuity product. The revised replacement rules extend to more types of replacement transactions, and they also call for more extensive consumer disclosure.

As is true with all insurance purchases, knowledge is your best policy. The SCC’s Bureau of Insurance wants you to have all the facts to make a sound and reasonable judgement about your insurance needs and objectives. Whether you are contemplating replacing or exchanging a policy, or you are considering purchasing a new policy or contract, always review all information presented to you. Consider carefully costs and benefits, policy values, your insurability, death benefits, fees or other expenses, interest rate guarantees (if applicable), surrender periods or other terms, tax consequences, and the quality and financial stability of the company or companies involved.

For more information, call the SCC’s Bureau of Insurance in Richmond at (804) 804-371-9691 or toll-free (nationwide) at 1-877-310-6560. A copy of the new and revised rules are found on the Bureau’s web site at www.scc.virginia.gov/division/boi/. Follow the links to “Laws/Orders” and “Insurance Regulations,” and view chapters 30 and 45.

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