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Fiduciary rule causes insurers to pull back on financial products

State Farm says it will not accept liability on the future sale of annuities or mutual funds. Meanwhile, Allstate, USAA and Nationwide plan to remain in the commission investment business.

By Arthur D. Postal | Updated on September 22, 2016
Many issuers and distributors of various financial products may be delaying compliance action until the outcome of several fiduciary rule lawsuits. (Photo: iStock)

WASHINGTON — State Farm Insurance says it will not be accepting liability under the Best Interest Contract (BIC) on the sale of annuities or mutual funds by the more than 12,000 of its agents throughout the U.S. who have licenses to sell securities.

At the same time, Allstate, USAA and Nationwide, three other insurers with large property casualty divisions whose captive agents also sell investment products, appear to have decided to remain in the commission investment business.

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