NUNN INTRODUCES BILL TO CUT RED TAPE, GIVE IOWANS CLEARER INSURANCE INFORMATION
The following information was released by the office of Iowa Rep. Zach Nunn:
Representatives Zach Nunn (IA-03) and Brittany Petterson (CO-07) today introduced the Consumer-Led Enhancement of Annuity and Insurance Registration Forms (CLEAR Forms) Act, bipartisan legislation requiring the Securities and Exchange Commission (SEC) to create clear, tailored registration forms for certain life insurance and annuity products.
“Planning for retirement is hard enough without forcing Iowans to dig through hundreds of pages of Washington paperwork,” said Rep. Nunn. “Federal disclosures should help Iowa families understand what they’re buying, not bury the answers they need. Our bipartisan CLEAR Forms Act cuts the red tape, puts clear information front and center, and helps Iowans make the best decisions for their families and financial futures.”
The SEC already maintains tailored registration forms for variable annuities and variable life insurance. No equivalent form exists for Registered Index-Linked Life Insurance, Contingent Deferred Annuities, or other registered non-variable insurance contracts, so issuers must register those products on the same general-purpose forms used for corporate stock and debt offerings. The result is disclosure built for the wrong reader. Consumers receive extensive detail about an insurer’s business operations, while the terms that determine whether a product fits their situation, including gain and loss limits and early withdrawal rules, are hard to find and inconsistent from one product to the next. The same ill-fitting forms impose millions of dollars in compliance costs on smaller insurers, costs that often keep new products off the market entirely and leave consumers with fewer choices.
The CLEAR Forms Act directs the SEC to propose tailored forms within 12 months and finalize them within 30 months. The forms must focus on the information consumers need to make knowledgeable decisions, reduce duplicative disclosures, and include investor testing for Contingent Deferred Annuities. If the SEC misses the deadline, issuers may use existing forms designed for comparable insurance products. The legislation also preserves all state and territorial insurance laws.
Congress previously used this approach through the bipartisan RILA Act of 2022, which directed the SEC to create tailored forms for Registered Index-Linked Annuities. The CLEAR Forms Act builds on that framework by extending clearer disclosures to additional insurance products.
“Too often American workers and families are being locked out of retirement savings and wealth-building opportunities because of a complex insurance policy structure. As families across the nation face a cost-of-living crisis, it is more important than ever we invest in policies that help make the American dream a reality,” said Rep. Pettersen. “The bipartisan Consumer-Led Enhancement of Annuity and Insurance Registration (CLEAR) Forms Act will help simplify life insurance, so more families are equipped to make informed decisions for themselves and their loved ones.”
IRI strongly supports the CLEAR Forms Act, which is included in the 2026 Federal Retirement Security Blueprint. By promoting consistent, appropriate registration and disclosure requirements, this legislation will help foster product innovation while making it easier for consumers to find the relevant information they need to make informed financial decisions,” said Wayne Chopus, President and CEO, Insured Retirement Institute. “We appreciate Reps. Nunn (R-IA) and Pettersen’s (D-CO) bipartisan leadership to advance a common-sense approach that delivers meaningful benefits for retirement savers.”
“Consumers should have clear, useful information when they’re considering a financial product to address their needs,” said David Chavern, President and CEO, American Council of Life Insurers. “The CLEAR Forms Act introduced by Reps. Nunn (R-IA) and Pettersen (D-CO) modernizes outdated disclosure requirements to give people what they actually need to know to make informed decisions before buying a life insurance policy or an annuity. It’s a common-sense step that will strengthen consumer understanding, encourage innovation and expand choices that can help Americans build financial security.”
The CLEAR Forms Act is supported by the American Council of Life Insurers and the Insured Retirement Institute.
Text of the bill can be found here.
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