BETHESDA, MD--(MARKET WIRE)--Nov 5, 2008 -- The Insurance Marketplace Standards Association (IMSA), the leading independent market conduct and compliance standards-setting organization for the life insurance, annuity and long-term care insurance marketplace, has announced the conclusion of its Annuity Supervision & Monitoring Review Initiative. This review was conducted by IMSA at the request of seven state insurance departments (IA, IL, NH, MO, OH, OR, and PA) to facilitate a clear understanding between regulators and life insurance companies about what constitutes suitable supervision and monitoring practices in the life insurance marketplace.

"We appreciate the substance of the report and the constructive team effort of regulators from seven states and compliance professionals from IMSA companies," said Michael McRaith, Illinois Insurance Director. "Thanks to IMSA for its leadership on this important project that advances the best interests of consumers."

"The State of Ohio is a proud partner in the IMSA Suitability Initiative," said Ohio Department of Insurance Director Mary Jo Hudson. "I believe that this collaborative effort promotes greater predictability and consistency in regulatory practices and company compliance practices. Predictability and consistency result in greater integrity in our annuity markets, and which is beneficial to consumers."

"We believe the IMSA report is an important first step toward the goal of ensuring that all annuity sales to consumers are suitable," said Roger Sevigny, NAIC President-Elect and New Hampshire Insurance Commissioner. "The NAIC will continue working to further clarify for the industry those practices that meet the requirements of the Suitability in Annuity Transactions Model Regulation."

"This has been a very helpful process," said Pennsylvania Insurance Commissioner Joel Ario, "proving once again that best practices organizations like IMSA play a vital role in bringing regulators and companies together to solve regulatory challenges."

The review was a direct outgrowth of discussions that took place between state and federal regulators, distributors, consumer organizations and IMSA-qualified company representatives at the IMSA Annuity Suitability Summit Meeting in March, 2008. The discussions revealed that regulators sought a better understanding of current practices companies use to comply with the supervision and monitoring requirements of the NAIC Suitability in Annuity Transactions Model Regulation. IMSA will co-host its next Summit with AARP tomorrow, November 6th, in Washington, D.C.

"The IMSA Annuity Suitability Summits have created a unique forum to craft common solutions to shared challenges," said James Mumford, First Deputy Insurance Commissioner of Iowa, "and the solutions that emerge from this forum only serve to strengthen our industry and protect the consumers who rely on the integrity of both regulators and insurance providers."

"As an increasing number of states continue to adopt some form of the NAIC Suitability in Annuity Transactions Model Regulation," said Carol Stern, Vice President & Chief Compliance Officer of ING, US Insurance Division, "the time to identify strategies that companies can employ to reasonably assure compliance and that regulators can review to verify compliance with state laws and regulations is now."

IMSA President & CEO, Brian Atchinson, commended IMSA-qualified companies and state regulators for their willingness to work collaboratively to identify the supervision and monitoring practices that insurance companies use to promote suitable annuity sales. "IMSA serves the marketplace as an honest broker between companies, regulators and consumers," said Atchinson, "and we are pleased to bring these groups together to protect consumers and promote a healthy marketplace."

IMSA was asked to conduct this review because IMSA-qualified companies have employed industry-leading annuity suitability supervision and monitoring practices (to demonstrate compliance with IMSA's supervision and monitoring standards) over the past 10 years -- well before the NAIC Suitability in Annuity Transactions Model Regulation was developed. IMSA also was asked to conduct a similar review of indexed annuity practices in 2006, which led to the development of industry leading practices regarding suitability, disclosure and producer training standards.

IMSA's Standards Advisory Committee, including representation from AARP, FINRA, NAIC, NAIFA and Standard & Poor's, also provided valuable input throughout this initiative.

IMSA is the premier market conduct and compliance standards-setting organization for the annuities, life insurance and long-term care insurance marketplace. Qualified companies commit to maintaining high ethical standards and to being fair, honest, and open in the way they advertise, sell and service their products. The IMSA seal is a guidepost of excellence and integrity for consumers. For more information, visit www.IMSAethics.org.

     For information, contact:
     Jennifer Kalita
     240-744-3021