Strong support for legislation that would create a streamlined nonresident producer licensing system was voiced today at a Senate hearing by officials representing the insurance industry’s primary agent and broker trade associations.
And, the Insurance Retirement Institute, which represents life insurers who sell tax-advantaged products, released a study in connection with the hearing indicating that maintaining state insurance licenses across multiple jurisdictions is a regulatory obstacle that may impede the sale of retirement income products.
The IRI study is part of a research initiative to identify regulatory barriers that impede broker-dealers’ ability and financial advisors’ willingness to sell lifetime income products.
IRI officials said in a statement released at the hearing that the study found that 80 percent of broker-dealers said state regulations have a negative effect on the ease of conducting annuity sales. In fact, while 46 percent of broker-dealers say they would like to sell more annuities, 83 percent of broker-dealers and 76 percent of financial advisors believe it takes considerably more time to sell annuities compared to other investments.