LIIIWG - Ad Hoc Group
Questions / Observations / Stuff
- Who were the members of the Ad Hoc Group? Specific names
- What Information was gathered?
How was the Information gathered?
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5/17/2016 LIII WG 2016-2 |
If the summaries are able to be shared, Mr. Wicka suggested, and the Working Group agreed, |
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5/17/2016 LIII WG 2016-2 |
Emily Micale (ACLI) said that the companies have only shared the sample summaries on a limited basis with Wisconsin, NAIC staff and consumer representatives, with the understanding they would not be shared more broadly at this time. She said they are working on getting the companies comfortable with sharing the summaries more broadly, but only if the use of the summaries is limited to aiding the Working Group in the completion of its 2016 charge. |
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| 8/17/2016 LIIIWG CC Richard Wicka, Chair |
1. Received an Update on the Ad Hoc Group’s Activities Ms. Stegall updated the Working Group on the activities of the ad hoc group, which the Working Group formed during its May 17 conference call and includes interested Working Group members, industry representatives and consumer representatives. She said the ad hoc group met July 21, July 7 and June 8 via conference call. |
| 8/17/2016 LIIIWG CC Richard Wicka, Chair |
Ms. Stegall said that during its June 8 meeting, the group discussed its goals to: 1) better understand the narrative summary |
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| 8/17/2016 LIIIWG CC Richard Wicka, Chair |
She (Stegall) said the ad hoc group also discussed tasks to help it achieve its goal, including: 1) gathering background on how the summaries are used and by whom; and 2) reviewing narrative and policy summary examples for key factors highlighted in the Working Group’s charge, such as readability, understandability, design and format.
Ms. Stegall said the ad hoc group learned that, in most cases, the summaries are not intended as direct-to-consumer pieces and are not meant to help a consumer shop around for coverage; they are delivered at the point of sale. She also said that, except from some whole life insurance and term life insurance products, the summaries are explained to the consumer by an agent or broker and really serve as a tool for financial advisors in highlighting the features of a product. |
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8/17/2016
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Ms. Stegall said that during its July 7 conference call, the ad hoc group reviewed and discussed whole life insurance and term life insurance sample summaries provided by the American Council of Life Insurers (ACLI). She said the ad hoc group specifically discussed the amount of information the samples included and how different that information was from company to company. Ms. Stegall said the ad hoc group decided not to cross-compare the summaries, but focused instead on the idea of developing a one- to two-page policy overview document to accompany the summaries as a means to promote consumer readability and understandability of the policy information, due to the fact that the current summaries are not typically used in |
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| 8/17/2016 LIIIWG CC Richard Wicka, Chair |
Ms. Stegall said that during its July 21 conference call, the ad hoc group reached consensus to recommend that the Working Group pursue the development of a policy overview document. Ms. Stegall said some industry representatives expressed concern with the recommendation, but agreed to continue the discussion. She said the ad hoc group also discussed key information that should be included in the overview document, but decided to curtail its discussions until it could obtain the Working Group’s support for its recommendation and the Working Group could present its recommendation to the Life Insurance and Annuities (A) Committee for consideration, along with approval for the Working Group to continue working to complete its charge.
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| 8/17/2016 LIIIWG CC Richard Wicka, Chair |
2. Discussed Plan for Moving Forward with Charge Mr. Wicka said the Working Group is expected to have a report for the Life Insurance and Annuities (A) Committee by the Summer National Meeting. He suggested that the Working Group recommend to the Committee that it continue with its charge and consider developing a policy overview document, as the ad hoc group recommended, that would assist consumers in understanding information about the policy the consumer is considering purchasing or has already purchased, which could be provided along with the policy and narrative summaries. Mr. Struk agreed with Mr. Wicka’s recommendation. |
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| 8/17/2016 LIIIWG CC Richard Wicka, Chair |
Ms. Lerner pointed out that the ad hoc group also discussed the possibility of making suggestions related to the current summaries. Mr. Wicka agreed the ad hoc group discussed such a possibility and said such discussions are contemplated as the Working Group continues its work on the charge. |
| 8/22/2016 LIIIWG CC Jennifer Stegall, Chair (WI); |
2. Adopted Preliminary Recommendation to Life Insurance and Annuities (A) Committee Ms. Stegall updated the Working Group on the ad hoc group’s activities. She said the ad hoc group was formed to assist the Working Group in making a preliminary recommendation to the Life Insurance and Annuities (A) Committee about the best way to achieve its goals to: 1) better understand the narrative summary required by Section 7B of the Life Insurance Illustrations Model Regulation (#582) and the policy summary required by Section 5A(2) of the Life Insurance Disclosure Model Regulation (#580); and 2) consistent with the Working Group’s charge, decide whether the summaries require enhancement. |