Mother Jones, a liberal news website, reports that it has copies of internal memorandums circulated by Barclays, a powerful London-based bank and financial services firm. In one such memo, the bank warns that a Warren presidency “would directly impact corporate earnings.”
The Setting Every Community Up for Retirement Enhancement (SECURE) Act was included in the massive $1.4 trillion spending bill signed by President Donald Trump at the end of the year. Getting the rules loosened for annuities in plans is “a big win for the insurance industry,” says one industry expert.
A National Association of Insurance Commissioners’ task force will collect data from several insurers over the coming weeks as part of its effort to establish a uniform long-term care rate review process.
On Jan. 1, the 2017 Principle-Based Reserving and Commissioners Standard Ordinary Table both took effect. Insurers had three years to meet the new standards, but some were certainly more prepared than others, one actuarial expert said.
Massachusetts Gov. Charlie Baker sent a letter Tuesday to Secretary of the Commonwealth William Galvin urging him to defer action on proposed fiduciary regulation. The proposal creates “confusion,” and ignores other state and national regulatory efforts, Baker wrote.
The Life Insurance and Annuities (A) Committee voted to pass a strengthened annuity sales standard on to the NAIC Executive Committee and Plenary. The executive committee could take the final vote on the annuity rule changes early in 2020.
Once again, lawsuits and regulation were the most-read annuity topics on InsuranceNewsNet during 2019. Otherwise, readers were naturally interested in annuity sales rankings, among other topics. Here are the top five most-read annuity stories of the year.
Regulatory concerns about the marketing and long-term viability of indexed universal life insurance policies made plenty of news in 2019. Those topics were among the most-read stories we published during the year.
Tiburon counts 335,000 financial advisors — a stagnant figure over the past 15 years — controlling nearly $25 trillion in assets. While the number of advisors remains the same, the assets they control has more than doubled since 2010. In the future, the independent channels should continue to grow, Tiburon predicted.
If the A Committee formally adopts the reworked annuity sales model next week, as expected, then it will go to the National Association of Insurance Commissioners’ Executive Committee and Plenary for final approval. States will then be able to adopt the new rules in 2020.
The independent broker-dealer space is growing at a healthy pace, but just not as healthy as registered investment advisors are, one leading analyst said. That is one trend line not likely to change anytime soon, said Chip Roame, managing partner of Tiburon Strategic Advisors.
A class-action lawsuit alleging that Security Benefit Life Insurance Co. defrauded consumers by implementing a “fraudulent scheme” involving a proprietary index used in two fixed indexed annuities was quietly withdrawn last week.
A key National Association of Insurance Commissioners’ committee put its tentative stamp of approval Sunday on a strengthened suitability in annuity transactions model law. The annuity sales model could be sent to the states early in 2020.
The Annuity Suitability Working Group is preparing to present a tentative draft of its annuity sales model, which the group voted to finalize Nov. 5, to its parent committee this weekend in Austin, Texas. The model incorporates a best-interest standard into existing suitability principles.
“Moderate growth” is the projection for both the property & casualty and life/health sectors going forward, a leading analyst says, but far greater opportunities exist for certain products. In particular, long-term care insurance and longevity annuities could and should grow, said Chip Roame, managing partner of Tiburon Strategic Advisors.
A significant split opened up this week on applying tightened indexed universal life insurance illustration rules to in-force policies….
Changes are to the Social Security Administration pension program are an annual event and 2020 is no different. Some changes are due to formulas, while others are part of the legislative framework underpinning Social Security. Here are six changes on the books for 2020.
An NAIC working group tentatively approved a new annuity sales model Tuesday. But the rule remains a long ways from the finish line. Next, the parent Life Insurance and Annuities (A) Committee will take up the rule during the fall meeting of the National Association of Insurance Commissioners.
Insurance commissioners tabled a proposal today to create a Life Insurance and Annuity Illustration Working Group to complete a comprehensive and coordinated review of annuity and life insurance illustrations. The proposed working group would coordinate illustration issues, particularly with indexed products, across annuity and life insurance.
State insurance regulators are trying to rein in indexed universal life insurance illustrations via an amendment to Actuarial Guideline 49. The tentative change — which still needs final approval — would bar IUL illustrations with bonuses and/or multipliers from illustrating higher than IUL products without these features.
The Annuity Suitability Working Group will hold a two-hour conference call Tuesday that could run longer if that’s what it takes to finish, the group said. According to a call invite, the working group “wants to finish its work and forward the draft to the Life Insurance Committee for its consideration at the end of this call,” which would require a vote.
Iowa Insurance Commissioner Doug Ommen conceded “there is a lot of concern among some regulators that the data that is finding its way” into the wrong hands.
Three consumers filed a class-action lawsuit alleging that Security Benefit Life Insurance Co. defrauded consumers by implementing a “fraudulent scheme” involving a proprietary index used in two fixed indexed annuities.
In a letter this week to Senate Majority Leader Mitch McConnell, R-Kent., Sen. Tim Scott, R-S.C., lobbied for immediate Senate consideration of the bipartisan Setting Every Community Up for Retirement Enhancement (Secure) Act. The bill passed the House by a 417-3 vote on May 23.
The Annuity Suitability Working Group is making a furious bid to nail down language of an annuity sales model law by the NAIC fall meeting the first week of December. The group took on the heart of the model this week: “The Duties of Insurers and Producers,” starting with “Best Interest Obligations.”
Regulation 187 was finalized in 2018 and took effect Aug. 1 of this year for annuities. Life insurance sales will fall under the rule on Feb. 1, 2020. It establishes a best-interest standard, mandates enhanced disclosure and documentation, required of the producer and insurance carrier, as well as training programs.
Ken Fisher reportedly made several offensive remarks during a “fireside chat” at the Tiburon Advisors’ CEO Summit, which has traditionally been a place for industry execs to speak candidly and off the record about their respected fields. The Tiburon managing partner says Fisher will never be invited back.
The Annuity Suitability Working Group wants to make sure its annuity sales model law will not disturb exemptions granted under Dodd-Frank. The group is holding two-hour conference calls in a bid to finally complete the model law before the National Association of Insurance Commissioners’ fall meeting in December.
A broker who sued Ohio National to recoup trail commissions will appeal an Oct. 2 ruling dismissing his lawsuit, his attorney says. Stephen Cook, a Dallas-based advisor affiliated with Triad Advisors, filed a class-action lawsuit filed in March challenging Ohio National’s decision to stop paying trail commissions on certain variable annuities.
A judge for the Southern District of Ohio tossed out a pair of lawsuits by separate brokers last week, bolstering Ohio National’s 2018 decision to eliminate trail commissions on certain variable annuities. But a pair of other lawsuits can proceed, judges have ruled.
The Accelerated Underwriting Working Group had its first conference call today and vowed to stick with a deliberative schedule that has the group deferring a work product until next summer. Annual surveys show insurers steadily adopting additional Big Data and accelerated underwriting efforts.
The Accelerated Underwriting Working Group is chaired by Robert H. Muriel, director of the Illinois Department of Insurance. It will consider the use of external data and data analytics in accelerated life underwriting and possibly draft guidance for states in 2020.
After roughly 18 months of meetings, the group is in tentative agreement on a best interest standard for annuity sales. But New York officials are adamant that the standard apply to in-force policies, a move other regulators are hesitant to make.
The Independent Insurance Agents and Brokers of New York filed an appeal Monday challenging a New York Supreme Court ruling upholding Regulation 187. The state’s new regulations governing annuity and life insurance sales, Regulation 187 is viewed by the industry as being too punitive.
The second quarter was a good one for life insurance sales. New data by Wink’s Sales & Market Report shows strong sales across the universal life, whole life and indexed life product lines. We’ve highlighted the important information in a graphic slide show.
According to a 2019 study conducted by The Penn Mutual Life Insurance Company, millennials— more so than earlier generations— are placing a greater emphasis on planning lifestyle-oriented details when it comes to starting or expanding their family.
A National Association of Insurance Commissioners’ working group was working through policy overview language when it took up a request by Pacific Life to change “gender” to “sex.” That led regulators to consider how transgender consumers are treated under insurance regulation.
Overall, consumers own about $15 trillion in home equity and another $13 trillion in small-business valuation, Tiburon Strategic Advisors found. Much of that is owned by baby boomers, or near boomers, and they will use that value to pay for their retirement.
The U.S. economy slowed in the spring, and most analysts expect it to weaken further in the months ahead. The nation’s gross domestic product— the broadest gauge of economic health— grew at a moderate 2% annual rate in the April-June quarter, the Commerce Department reported Thursday.
Actress and model Brooke Shields, 54, is a near perfect fit for this year’s Life Insurance Awareness Month campaign, said Faisa Stafford, president and chief financial officer of Life Happens. So far, more than 60 million people have seen either Shields’ television or radio ads.
The Life Insurance and Annuities Committee established the Retirement Security Working Group during the NAIC Summer Meeting in New York City earlier this month. The group’s efforts could include working with the Interstate Insurance Product Regulation commissioner to develop new lifetime income products.
Motivation is high to craft advice standards that harmonize as much as possible across the financial services’ landscape, a legal expert told a LIMRA audience during a Thursday webinar. In particular, to harmonize Department of Labor rules with the Securities and Exchange Commission’s Regulation Best Interest.
Life insurance or annuity policies sold with a long-term care rider jumped from 228,000 in 2015 to 461,000 in 2018, LIMRA has found. Today, more than 40 carriers are selling these products with a long-term care element. State insurance regulators are hoping the hybrid products stabilize the LTC market while providing consumers with protection.
State insurance regulators moved briskly through four topics as they try to thread the needle between suitability and fiduciary in crafting an annuity sales model law.
Acting Albany County Supreme Court Justice Henry Zwack ruled that the New York State Department of Financial Services was within its authority when it issued Regulation 187. The regulation took effect Thursday for annuity sales in New York, and will extend to life insurance sales in six months.
A National Association of Insurance Commissioners’ working group has accelerated efforts to complete its long-delayed “policy overview” summary to accompany life insurance sales. The policy overview will accompany the Life Insurance Buyer’s Guide and regulators are considering moving up delivery of both.
The Annuity Suitability Working Group aims to tentatively finalize a standard for annuity sales by the National Association of Insurance Commissioners’ Fall Meeting in November. Debate over whether to add “prudence” to the model law dominated another 90-minute conference call Monday.
There were 87 insurance company transactions during the year, the highest number tracked by Tiburon Strategic Advisors in at least five years. Fueled by the mega-merger between CVS Health and Aetna, the 87 transactions averaged $971 million per deal, more than twice the 2017 average.
The Annuity Suitability Working Group is working through five questions in a bid to finalize an annuity sales model law that regulators have been working on for more than a year. Members are focusing on insurers in a bid to rein in annuity sales incentives.
The Annuity Disclosure Working Group is studying a proposal to increase the time indexes must be in existence to be used in annuity illustrations from 10 to 15 years. But regulators are having difficulty getting past a couple of key issues.
Total new premium for individual life combination products dropped 2% to $4.3 billion in 2018, according to LIMRA. Life combination products provide life insurance coverage with long-term care or chronic illness coverage, an attractive value proposition to consumers. In 2018, combination products represented 27% of the overall U.S. individual life insurance market.
California Insurance Commissioner Ricardo Lara’s office said the state may push for a best-interest annuity sales rule similar to New York’s if the NAIC doesn’t tighten up its annuity sales proposal. An NAIC working group has two conference calls and an in-person meeting to discuss the rule over the next two weeks.
New IUL products featuring “multipliers” or “bonuses” prompted the IUL Illustration Subgroup to consider changes to Actuarial Guideline 49. During a Monday conference call, one regulator called for “a total rework of AG 49 from the ground up.”
A magistrate judge denied a motion by Ohio National to dismiss a class-action lawsuit filed in March by Stephen Cook, a Dallas-based advisor affiliated with Triad Advisors. Judge Stephanie Bowman also recommended that the case be consolidated with a similar one brought by LPL Financial broker Lance Browning.
The NAIC is creating tools and graphics that each state can incorporate into their insurance department websites, working group members said this week. Work will begin immediately with a “toolkit” of info in time for Life Insurance Awareness Month in September.
Little bits of kindness help us all get ahead. Speakers at the National Association of Health Underwriters annual conference explain how paying it forward helps your business.
An insurance commissioners’ working group opened up a new comment period and scheduled two 90-minute conference calls in a bid to finalize an annuity sales model rule. Comments are being accepted until July 10 on two topics: conflict of interest and the care obligation.
The rule proposed by the New Jersey Bureau of Securities would require all financial advisors registered in the state to act as fiduciaries, making New Jersey one of the first states to propose a uniform fiduciary standard for all financial services professionals.
Commissioner Doug Ommen hopes to retain suitability ideas even as the word is scrubbed from his annuity sales proposal. The driving force is to harmonize state insurance regulations with the new Securities and Exchange Commission’s Regulation Best Interest, Ommen explained.
LIMRA and LOMA are offering a comprehensive training program to help sales professionals and home office employees understand and comply with New York Regulation 187.
