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NAIC Urged To Do Full Review Of Illustrations; Regulators Demur

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The National Association of Insurance Commissioners creates model laws for states to pass.

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.

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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.”

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.

The United States House of Representatives Committee on Financial Services and the House Subcommittee on Investor Protection, Entrepreneurship and Capital Markets held a hearing Thursday morning examining the Securities and Exchange Commissions proposed Regulation Best Interest rule.

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“Mr. Lindberg has asserted from the outset that the allegations about his insurance companies and him are false and is pleased that Mr. Freeh and his team to have agreed to take on this assignment,” a spokesperson for Mr. Lindberg stated. Mr. Lindberg started a small health insurance compliance and reimbursement newsletter business with $5,000 in 1991 that became…
A gun-rights group is accused of illegally selling shooting insurance in Washington state.

A Wisconsin- based company has been fined $100,000 and barred from selling insurance policies in Washington after it sold policies to gun owners promising to pay legal costs if they were involved in a shooting, according to the Washington state insurance commissioner. The problem: It is illegal in Washington state to insure criminal activity.
Life insurance sales are stagnant, but profits are still being made.

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.

Oct. 4– For the second time in three months, a judge for the California Department of Insurance has refused to change or reconsider his ruling in a workers compensation case, despite direction from Commissioner Ricardo Lara or his special counsel. Administrative Law Judge Clarke de Maigret, also known as an ALJ, wrote in a response to the commissioner last week…
The National Association of Insurance Commissioners creates model laws for states to pass.

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 United States Department of Labor headquarters in Washington, D.C.

Representing the U.S. Chamber of Commerce, Eugene Scalia played a major role in convincing an appeals court judicial panel to vacate the Obama Labor Department’s fiduciary rule. The DOL is working on a replacement rule to be unveiled by the end of the year.

–ADISA, the nation’s largest trade association for the retail alternative investment space, announced today that its government relations team met with regulators in New Jersey earlier this week to discuss the state’s impending fiduciary rule. ADISA board member and former president, John Grady, along with Thomas Rosenfield, attended the meeting.
The National Association of Insurance Commissioners creates model laws for states to pass.

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.

Sep. 4– California Insurance Commissioner Ricardo Lara apologized Tuesday for taking campaign contributions from– and scheduling meetings with– insurance industry-connected donors, and said he would halt all political fundraising until the end of the year while he works to put a stop to it. Lara’s campaign for reelection in 2020 has refunded $83,000 in such…
Many seniors are not prepared for the cost of retirement.

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.