NAFA, NAIFA Respond to Dateline’s Charges of Questionable Sales Tactics Employed by Annuity Producers

Leaders in the industry swiftly responded to the program’s charges.

The National Association of Fixed Annuities (NAFA) called Hansen’s report “irresponsible and biased.” 

NAFA sent numerous statements to Dateline to encourage Hansen and the show’s producer to consider the story’s consequences of leading consumers away from a “perfectly sound, sensible, and prudent component of their retirement planning portfolio.” NAFA stressed that consumers may erroneously be left with a negative view of all fixed annuities or all salespeople based upon the deceptive sales practice of a few.  As a result, they could react in a way that would be financially harmful to them.
 
In NAFA’s view, the fixed annuity marketplace offers a diverse set of low-cost and competitive choices for consumers, who are protected by their state insurance department’s oversight and enforcement of state regulations. NAFA believes that it is the particular benefits of each and every financial product that drive sales. 
 
NAFA strongly opposes fraudulent and deceptive sales tactics and inappropriate or unsuitable sales. The association is working with others in the industry to ensure a safe and informed environment for consumers. 
 
In response to the program, Jeffrey J. Taggart, president of the National Association of Insurance and Financial Advisors (NAIFA), said, “NAIFA and its federation of 60,000 member agents will continue to strongly condemn any behavior that intentionally misleads consumers or leads to inappropriate recommendations and tactics in connection with the sale or marketing of all financial products, including annuities. NAIFA believes that financial products marketed to all consumers—not just seniors—should be appropriate for the needs, goals, and specific circumstances of the individual.”

Taggart added, “It’s vital to keep in mind that annuities and similar products will continue to play an important role in sound financial and retirement planning.”

According to Taggart, NAIFA is working toward the adoption of state regulations that will implement suitability and disclosure requirements regarding the sale of annuity products. The association will continue to support regulation of professional designations to ensure consumers are working with “qualified, ethical agents and advisors.”