Phillip Wasserman’s Take on the Department of Labor Ruling

Justice Scales

Once again the insurance industry stuck its head in the sand and waited for the government came by to kick it in the rear end with the Department of Labor’s recent fiduciary rule.

For those who don’t remember it was my legal brief that overruled 151A. Through my relationship with the Speaker of the House, myself and others successfully lobbied to have the government change the law on annuities. We made sure the law in Florida was not changed to a 5-5 annuity.

In my legal opinion, I agree with many other attorneys that, if handled properly, the rule will be overturned. If not, most of us can kiss our annuity business goodbye. While I am almost 100% convinced that the rule will eventually be overturned, I am certain that it will costs hundreds of thousands of dollars in the process. On a personal level, I am not too concerned. Most of my work is in the life insurance sector these days. But what concerns me is that the companies don’t appear to prepare for moments like this. You’d think they would know how to handle this. Instead, it seems as if they don’t have a care for people like you and the ones they assist.

My thought is just another in the mix. With it and five dollars, you can buy a coffee at Starbucks. Take with it what you will, but I am not a fan. In time, along with a hefty bill, the rule will likely have a short shelf life.

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