July 21, 2015

The Honorable Thomas E. Perez

Secretary 

U.S. Department of Labor

200 Constitution Ave., NW

Washington, D.C. 20210

Dear Secretary Perez: 

On behalf of the National Association of Insurance Commissioners (NAIC)1and its member state 

insurance regulators, we would like to thank you for the opportunity to comment on the Department of 

Labor (DOL)’s proposed rule regarding the definition of “fiduciary” as it relates to ERISA plans and 

IRAs.

The rule is comprehensive and complex, and would make significant changes to retirement plan 

fiduciary rules that have been in place for almost 40 years. We appreciate the dialogue with your staff 

since the rule was proposed to gain a better understanding of how the rule is intended to work and 

potential clarifications you are considering as the rulemaking process continues. 

We recognize that oversight of the retirement plans marketplace is a shared regulatory responsibility, 

and has been so for decades. State insurance regulators, the DOL, SEC and FINRA each have an 

important role in the administration and enforcement of standards for retirement plans and products 

within their jurisdiction. From a consumer protection standpoint, it is important that the approaches we 

as regulators take within the regulatory framework are consistent and compatible as much as possible. 

State insurance regulators share the DOL’s commitment to protect, educate and empower consumers as 

they make important decisions to provide for their retirement security. The states have not only acted to 

implement a robust set of consumer protection and education standards for annuity and insurance 

transactions, but have extensive enforcement authority to examine companies, revoke producer and 

company licenses to operate, as well as collect and analyze industry data. Such authority allows state 

regulators to identify market issues and take the appropriate regulatory action swiftly and effectively 

when warranted. So much of protecting consumers comes down to effective enforcement. Although 

there will always be instances of improper conduct, the states have a strong record of protecting 

consumers, especially seniors, from inappropriate sales practices or unsuitable products. 

 

1 The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support 

organization created and governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. 

territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and 

coordinate their regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators 

domestically and internationally. NAIC members, together with the central resources of the NAIC, form the national system 

of state-based insurance regulation in the U.S.
2

In our discussions to date with DOL officials, we have greatly appreciated their insights on 

operationalizing a number of provisions of the rule, including the best interest standard, reasonable 

compensation requirements, sales of proprietary products, differences between educational activities and 

fiduciary responsibilities, and others. We also appreciate that DOL is open to suggestions on how to 

further clarify and provide certainty on a number of those areas to limit the potential for unintended 

consequences, confusion, or litigation. 

While we understand and respect the DOL’s role in regulating the ERISA plan marketplace, as the 

principal regulators of insurance companies and producers it is our duty to consider the implications of 

the proposed rule on the consumer protection standards we have developed and enforce, as well as its 

impact on the insurance marketplace. Accordingly, we will carefully evaluate the stakeholder input 

submitted during the comment period and look forward to further discussions. 

Sincerely, 

Monica Lindeen John M. Huff

NAIC President NAIC President-Elect

Montana Commissioner of Director of Missouri’s Department of Insurance, 

Securities and Insurance Financial Institutions, and Professional Registration

Sharon P. Clark Theodore K. Nickel

NAIC Vice President NAIC Secretary-Treasurer

Kentucky Insurance Commissioner Wisconsin Insurance Commissioner

The Honorable E. Benjamin Nelson

NAIC Chief Executive Officer

United States Senator (Ret.)