Contingent Deferred Annuities: NAIC Update

This update provides a brief overview of recent activities of the National Association of Insurance Commissioners ("NAIC") in connection with the issuance and regulation of contingent deferred annuities ("CDAs").

A CDA is a type of annuity contract that provides guaranteed lifetime income payments if the assets in an investment account are exhausted during the life of the contract holder through allowable withdrawals and/or poor investment performance. The investment account contains the covered assets (often mutual funds or assets in a managed account). These assets typically are not owned by the insurance company that issues the contract and remain under the control of the contract holder.