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Montana Administrative Register Notice 6-264 No. 18   09/24/2021    
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BEFORE THE COMMISSIONER OF SECURITIES AND INSURANCE
OFFICE OF THE MONTANA STATE AUDITOR

 

In the matter of the adoption of New Rules I through V pertaining to the Suitability in Annuity Transactions Act

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NOTICE OF ADOPTION

 

TO: All Concerned Persons

 

1. On August 6, 2021, the Commissioner of Securities and Insurance, Office of the Montana State Auditor (CSI) published MAR Notice No. 6-264 pertaining to the public hearing on the proposed adoption of the above-stated rules at page 971 of the 2021 Montana Administrative Register, Issue Number 15.

 

2. The CSI has adopted the above-stated rules as proposed, effective October 1, 2021:  New Rules I (6.6.810), II (6.6.811), III (6.6.812), IV (6.6.813), and V (6.6.814).

 

3. The CSI has thoroughly considered the written comments received; no persons appeared to testify at the public hearing. A summary of the comments received and the CSI's responses are as follows:

 

COMMENT 1: Commenter 1, stating first that the agency had "adopt[ed] the NAIC Model Rule in its entirety," went on to comment that it "applaud[ed] [the agency's] action to adopt the rule verbatim and [the agency's] recognition that it is important to make doing business in Montana as easy as possible." 

 

RESPONSE 1: CSI has adopted by reference in New Rule II the model forms which accompany the National Association of Insurance Commissioners (NAIC) Model Regulation No. 275, Suitability In Annuity Transactions, published Spring 2020. CSI adopted the Model's forms with an aim to accomplish what this comment recognizes—making it easy to do business in Montana. While these forms are adopted verbatim, to the extent Commenter 1 references the adoption of "the NAIC Model Rule in its entirety," the comment may misunderstand the scope of CSI's rulemaking. The statutory law containing, in large part, the text of the NAIC Model was enacted by the Legislature which did make some substantive changes; CSI has merely adopted rules pursuant to the statutory law passed by the Legislature. 

 

COMMENT 2: Commenter 2 represented a trade group that was "pleased to support the proposal to adopt New Rules I through V[,]" and noted the importance of "uniformity and consistency, …[in] promulgat[ing] the NAIC model disclosure forms, along with providing guidance on the training requirements consistent with the NAIC model requirements."

 

RESPONSE 2: CSI accepts the support. Uniformity and ease of compliance for professionals operating in many jurisdictions was a goal of the proposed rules now being adopted.

 

 

/s/  Kirsten K. Madsen                                 /s/ Mary Belcher                             

Kirsten K. Madsen                                       Mary Belcher

Rule Reviewer                                              Deputy Auditor

    Commissioner of Securities and Insurance, Office of the   Montana State Auditor

 

Certified to the Secretary of State September 14, 2021.

 

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