Final answer:
The NAIC annuity suitability model regulation ensures that annuities are suitable for consumers' financial needs and objectives. This aligns with broader regulatory efforts to provide reasonable insurance prices and comprehensive coverage.
Step-by-step explanation:
The purpose of the NAIC annuity suitability model regulation is best defined by option a: "... so that the insurance needs and financial objectives of consumers are appropriately addressed". This model is designed to ensure that when insurance products, especially annuities, are sold, they are suitable and align with the buyer's financial status, needs, and objectives. By requiring that this alignment is verified, it helps mitigate issues such as adverse selection and ensures that insurance coverage matches the risk profiles of consumers in an equitable manner.
State insurance regulators, as part of the National Association of Insurance Commissioners (NAIC), strive to ensure that the pricing of insurance is kept reasonable while also seeking widespread coverage. The annuity suitability model is one of the various regulations set at the state level that attempts to balance these sometimes conflicting goals without getting entangled in political influences.