Media Advisory: NAIC To Hold Public Hearing On Stranger Originated/Owned Annuities

WASHINGTON, D.C. (May 18, 2010) — On Thursday, May 20, 2010, the National Association of Insurance Commissioners (NAIC) will hold a public hearing on the emergence of Stranger Originated/Owned Annuities in Washington, D.C.

Hosted by the NAIC Life Insurance and Annuities Committee, the hearing will focus on the suspect practice of targeting seniors and terminally ill patients by inducing them to purchase an annuity largely for the benefit of investors or intermediaries. The hearing will examine the following broad principles:

• Are these transactions lawful?
• How do they affect insurable interest?
• Is there enough consumer protection in current model laws and regulations?
• If there is not, how should the models and regulations be developed or tightened?

The hearing will include testimony from consumers, state regulators and industry representatives.

WHAT: NAIC Life Insurance and Annuities Committee Public Hearing on Stranger Originated/Owned Annuities
WHEN: Thursday, May 20, 2010
11:00 a.m. – 5:00 p.m. ET
WHERE: Washington Court Hotel
525 New Jersey Avenue, NW
Washington, D.C.

Click HERE for additional information about the public hearing.
Click HERE to view the final agenda.

About the NAIC
Formed in 1871, the National Association of Insurance Commissioners (NAIC) is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and five U.S. territories. The NAIC has three offices: Executive Office, Washington, D.C.; Central Office, Kansas City, Mo.; and Securities Valuation Office, New York City. The NAIC serves the needs of consumers and the industry, with an overriding objective of supporting state insurance regulators as they protect consumers and maintain the financial stability of the insurance marketplace. For more information, visit www.naic.org.