Who is responsible for regulating the sale of annuities?

The regulation of the sale of annuities is primarily the responsibility of state insurance departments under various statutes. Each state in the U.S. has its own regulations and laws that govern the insurance industry, including annuities. These regulations are designed to protect consumers and ensure that annuity products are sold in a fair and transparent manner.

State insurance departments are tasked with overseeing the licensing of insurance agents, monitoring the financial health of insurance companies, and enforcing laws that require thorough disclosure of annuity features and fees. This localized regulatory structure allows for a more tailored approach that can address the needs and concerns of consumers within that state.

Federal agencies do have a role in the overall regulation of financial products and consumer protection, but the specific oversight of annuity sales primarily falls to the states. In contrast, international financial organizations do not generally regulate domestic financial products like annuities, and while private annuity companies are involved in selling these products, they do not have regulatory authority. Therefore, the correct choice highlights the key role of state insurance departments in ensuring that the sale of annuities is conducted properly and ethically.