Congress has a lot of its plate, but financial services would like to see a retirement income security bill get passed before the end of the year.
John Hilton
NAIC’s Proposed Annuity Sales Rule Under Fire
A National Association of Insurance Commissioners’ working group is satisfying neither side with an annuity sales model law that is out for public comment. The draft avoids many of the controversial issues the working group debated over the past year.
States Expected To Ramp Up ‘Best Interest’ Efforts Early In 2019
Up to 14 states are ramping up efforts to put agents under a fiduciary duty. New York is furthest along with a best interest rule, which faces an industry lawsuit that could be decided early in 2019. Otherwise, the NY rule is slated to take effect in August 2019.
The Good And Bad In Life Insurance 3Q Numbers
LIMRA and Wink were both correct with last week’s “universal life is up” and “universal life is down” reports, respectively. The key is how the data is viewed. Overall, new premium rose quarter-over-quarter from 2017.
A.M. Best Maintains Ohio National Rating Despite Recent Upheaval
A.M. Best recently met with the Ohio National management team to discuss a series of recent events, including the insurer being sued several times for a decision to end trail commissions on certain annuities. A.M. Best is sticking with its strong ratings for now.
NAIFA Files Second Lawsuit Against NY Best-Interest Rule
The National Association of Insurance and Financial Advisors’ New York chapter filed a lawsuit to stop the state’s controversial best-interest rule. The rule is “arbitrary and capricious” and was crafted outside of the New York Legislature, the lawsuit claims, which has the proper authority.
Ohio National: No Strategy Change With Executive Shuffle
Ohio National has no plans to reverse its controversial decision to end trail commissions for select variable annuity contracts, a company spokesman said today. The company announced the surprise departure Tuesday of president and chief operations officer Christopher Carlson after just three months.
Ohio National President/COO Departs After A Controversial Three Months
Ohio National named a new president/COO Tuesday and announced the surprise departure of Christopher Carlson just three months after he ascended to the top post. The company has had a turbulent fall after announcing in September that it would end trail commissions on certain variable annuities.
The Big I And PIANY File Lawsuit Against New York Best-Interest Reg
The Big I and the Professional Insurance Agents of New York filed a lawsuit today asking a New York court to throw out the best-interest regulation approved by state officials this summer. The new standard is “extremely troubling,” plaintiffs said in a press release.
LTCi Liquidation Decision Could Undermine The Insurance Industry, ACLI Says
A state insurance commissioners’ task force will consider a Pennsylvania court case involving insolvent LTCi claims. A request to limit those claims could have implications for life insurance and annuities if successful, an industry trade association says.
A.M. Best: Insurers Face Steep Costs In New York
New York finalized its best-interest standard in July for both annuity and life insurance sales. A new report finds that insurers are facing higher compliance costs that come with retraining sales staff and other associates involved in annuity and life insurance transactions.
NAIC Working Group Settles On Policy Summary Concept
A National Association of Insurance Commissioners working group wants to “enhance consumer understanding” with a proposed two-page summary to accompany life insurance illustrations. The group is making slow progress on the proposal, with a few issues remaining to work out.
Ohio National Sued For Second Time In A Week
Veritas Independent Partners, an independent broker-dealer based in Conway, Ark., filed a lawsuit in the Southern District of Ohio court asking the court to require Ohio National to continue paying trail commissions per their contracts.
Broker Lawsuit Against Ohio National Could Be ‘Just The Beginning’
The first lawsuit against Ohio National was filed this week by a Texas broker. Ohio National stunned the annuity sales industry with its September announcement that it will stop paying trail commissions on certain variable annuity contracts.
What The Midterms Mean For Financial Services
Election night yielded a little something for everyone. But what does it mean for insurance and financial services as a whole? We see three key takeaways, and not all of them are bad news.
DOL Rule Forced Changes On Advisors, Survey Finds
Fifty-four percent of advisors say they will “very likely” increase compliance infrastructure as a direct result of the late Department of Labor rule, a new survey finds. Many advisors and firms are expected to stick with new ways of doing business, despite the DOL rule being tossed out by an appeals court.
NAIC Working Group Plans Deeper Dive Into Annuity Illustrations
An NAIC working group is debating whether to allow insurers to illustrate indexed annuities using indices that have been around less than 10 years. A new proposal would double that figure to 20 years. Opponents say the indices would not be accurate, nor easily understood by consumers.
Election Day Preview: Insurance Is On The Ballot, Too
Tuesday’s election is likely to be followed by about 20 new state insurance commissioners sometime in 2019. Given the state momentum for regulatory control of insurance rules, the election results are expected to have a major impact on the industry, experts say.
Insurers ‘Back To Square One’ After Election, Panelist Predicts
If control of Congress changes in any way, a very real possibility, insurer teams will likely have to retrace their lobbying steps, said a panelist at LIMRA’s 2018 Annual Conference.
Industry Pressured To Find UL Policy Fix
Universal life was a very popular product in the 1980s, when interest rates routinely hit double digits. When interest rates nosedived, however, it began a negative spiral that took UL policyholders down a financial rabbit hole. While some surrendered their policies and took the loss, others keep paying much-higher premiums. What can be done?
NAIC Annuity Sales Group Deeply Split Over ‘In-Force’ Issue
A fierce split on whether to extend annuity sales rules to in-force policies crippled a state insurance commissioners’ working group.
A National Association of Insurance Commissioners working group has been hashing out an annuity sales model. But the group’s chair says the model will not be done in time for NAIC’s fall meeting in San Francisco next month.
NAIC Group Debates Trips, Incentives In Annuity Sales Model
A National Association of Insurance Commissioners’ working group is on track to present a completed annuity sales model law to its parent committee.
NAIC Working Group Balks At Tough ‘Best Interest’ Annuity Rule
The New York-California faction made a big push to beef up a proposed state insurance commissioners’ annuity sales rule, but the effort fell short when working group members rejected “best interest” language.
NAIC Group Continues To Debate Annuity Sales Rule
Members hope to reach tentative agreement on an annuity sales rule it can take to its parent committee during the NAIC Fall Meeting Nov. 15 in San Francisco.
NAIC Annuity Sales Rule Proposal Faces Showdown In Chicago
A National Association of Insurance Commissioners’ working group will meet again in person – this time in Chicago. The group hopes to reach agreement between conservative and liberal factions on an annuity sales model law for the states to adopt.
NAIC Working Group Chair Critical Of Annuity Illustration Changes
An NAIC working group is debating whether to allow insurers to illustrate indexed annuities using indices that have been around less than 10 years. Opponents say the indices would not be accurate, nor would they be understood by consumers.
NAIC Sketches Out Online Resource Prototype
National Association of Insurance Commissioners members are debating how to best create an online resource of life insurance information for consumers. The effort is meant to supplement the NAIC Life Insurance Buyer’s Guide. More consumers are getting information online, so that’s where regulators want to be.
NAIC Working Group Closing In On Disclosure Overview Language
A National Association of Insurance Commissioners working group wants to “enhance consumer understanding” with a proposed two-page summary to accompany life insurance illustrations. The group is making slow progress on the proposal, with a few issues remaining to work out.
‘Reckless’ Ohio National VA Purge Not A Likely Trend: Analyst
Broker-dealers across the country and reeling and unsure how to respond to Ohio National terminating trail commissions on some of its variable annuities. At least one leading annuity analyst does not expect the ON decision to be repeated by other insurers.
NAIC Working Group Stumbles On Annuity Illustration Changes
Insurance commissioners are wrestling with a rule change that would allow insurers to illustrate indexed annuities using indices that have been around less than 10 years. The NAIC working group needs at least one more conference call to finalize the amendment.
Industry Stunned By Ohio National Decision To End Broker Contracts On VAs
Ohio National will end broker compensation on existing variable annuity contracts with guaranteed minimum income benefit riders, the company announced last week. The decision is believed to be unprecedented and could wind up in court.
New Research Finds Ultra-Rich Adding Wealth And Likely Needing Advice
A booming economy combined with generous tax cuts has the affluent class increasing in numbers. Affluent households, or those with more than $100,000 income, grew by 30 percent between 2012 and 2016.
Republican lawmakers are bidding to make last year’s tax cuts permanent, but face opposition. One industry group would like to see greater attention paid to retirement security aspects.
Survey: Insurers Need To Get Digital With It
A new Deloitte survey finds insurers well behind the ball when it comes to meeting consumers’ needs digitally. Consumers are self-educating about life insurance online and carriers and agents need to respond better to that market if they want to increase life insurance ownership, the survey concludes.
NAIC Sets Meeting To Finalize Best Interest Rule For Annuities
A National Association of Insurance Commissioners’ working group hopes to finalize a best-interest standard for annuity sales during a special two-day meeting next month in Chicago.
Insurers Grappling With NY Cybersecurity Regs; More States To Follow
The New York Department of Financial Services passed tough cybersecurity rules for financial services last year, and more states are working on their own versions.
NAIC Pushing For 2-Page Life Insurance Illustration Summary
A National Association of Insurance Commissioners working group wants to “enhance consumer understanding” with a proposed two-page summary to accompany life insurance illustrations. The group is making slow progress on the proposal, with a few issues remaining to work out.
NAIC Focuses On Proprietary Indices In Annuity Illustration Changes
Insurance commissioners are wrestling with rules that would allow insurers to illustrate indexed annuities using indices that have been around less than 10 years.
American Equity CEO: Sale Rumors Hurting Distribution Partners
American Equity reported a healthy second quarter, but its late-May admission that it was negotiating with a potential buyer has distribution partners concerned. Meanwhile, the company plans to release new products during the third quarter.
Panel Tables Uniform LTCi Rate Review Idea
The Long-Term Care Insurance Task Force tabled a request to form a subgroup to study the idea of a uniform long-term care insurance rate review process.
Showdown Looms Over NY Push To Add Life Insurance To NAIC Rule
New York and California insurance officials signal a steadfast willingness to fight for life insurance to be included in any NAIC annuity best-interest rule.
NAIC Gets Pushback Over Extending Annuity Rules To In-Force Agreements
The National Association of Insurance Commissioners is attempting to come up with national annuity sales rules. Industry representatives express frustration with mixed messges and unclear rules.
NAIC To Tangle Over Annuity Sales Regs At Boston Meeting
A state insurance commissioners annuity subgroup will meet in Boston Saturday and attempt to reach a consensus on a controversial annuity sales model law. New York will be represented, although the state recently passed its own tougher rules in defiance of the NAIC.
Insurance Agents Might Already Be Fiduciaries
The Department of Labor fiduciary rule is dead, but financial professionals selling products to retirement accounts need to be aware of new interpretations of the “five-part test” standard. DOL officials plan to be more strict in interpreting the test going forward, one industry expert says.
New York Delivers ‘Worst Fears’ With Tough Reg For Life Insurance
New York finalized its best-interest standard for annuity and life insurance sales this week. The rules have industry officials concerned that a ‘patchwork’ of different rules across different states could make cross-state sales a nightmare of paperwork.
Congress Considering Bill To Boost Annuities Inside 401(k)s
Congress is considering a variety of changes to make it easier for Americans to set aside money for retirement, including allowing annuities to be sold inside 401(k) plans. Auto-enrollment and multi-employer plans are some other ideas on the table.
An NAIC subgroup finds that no additional regulation of modified guaranteed annuities is needed. The group is likely to vote to disband itself next week.
How The DOL Fiduciary Rule Changed Norms
The Department of Labor fiduciary rule might be history, but it leaves new interpretations behind, along with some paperwork, a leading regulatory law firm says. The rule’s impact is sure to be felt for some time to come.
SEC Investment Advice Rule Tough Enough, Clayton Assures Pols
The SEC’s proposed best-interest rule for brokers strikes the right balance, Chairman Jay Clayton testified before a House committee Thursday. The agency is accepting public comment on the rule until Aug. 7.
Court Issues Mandate Officially Killing DOL Fiduciary Rule
A federal appeals court finally issues a final mandate officially killing the Department of Labor fiduciary rule after a long delay. The action leaves the SEC Regulation Best Interest as the main rule proposal to regulate financial advice.
Lone Judge Likely Pushing For DOL Fiduciary Rule Hearing, Lawyer Says
A judge within the Fifth Circuit Court of Appeals is likely pushing for a full judicial review of the March 15 decision to toss the DOL fiduciary rule, one lawyer says. The court continues to delay issuing a final order that would officially kill the DOL rule.
The Securities and Exchange Commission’s Regulation Best Interest is drawing heated opposition from an interesting coalition of allies. But Chairman Jay Clayton insists that the agency will not be deterred in its rulemaking efforts.
DOL Won’t Ask SCOTUS For Fiduciary Rule Appeal
The federal government will not appeal a court ruling tossing the Department of Labor fiduciary rule. The Trump administration had until the end of Wednesday to appeal the decision to the Supreme Court.
Insurers Win As Fed Hikes Interest Rates Again
The Federal Reserve hiked interest rates today as expected. The news is great for insurers who receive several different benefits from higher interest rates, industry experts say.
NAIC Focuses On Proprietary Indices In Annuity Illustration Discussion
A National Association of Insurance Commissioners’ working group is considering model law changes to permit indexed annuity illustrations using indexes in existence less than 10 years. Critics have mixed views on the possible changes.
ACLI To Court On DOL Fiduciary Rule: ‘What Are You Waiting For?’
The Fifth Circuit Court of Appeals hasn’t yet issued a final mandate officially killing the Department of Labor fiduciary rule. The ACLI asked the court today to issue the mandate as soon as possible.
NAIC Group Confronts Friction, Pushes Ahead On Annuity Standard
A National Association of Insurance Commissioners’ working group bridged some tough gaps, but punted others, during a two-day meeting to craft an annuity sales transactions standard.
NAIC Group Blocks NY Push For Tougher Annuity Transaction Standard
A National Association of Insurance Commissioners group meeting in Kansas City opted for a more conservative approach from Iowa as a framework for an annuity transaction model law.
The National Association of Insurance Commissioners is set for another day of debate over the annuity transaction standard. A key issue is whether to require full disclosure of an agent’s compensation in its model law.
