2004 0922 - GOV (Senate) - Examination and Oversight of the Condition and Regulation of the Insurance Industry, Richard Shelby (R-AL)

  • 2004 0922 - GOV (Senate) - Examination and Oversight of the Condition and Regulation of the Insurance Industry, Richard Shelby (R-AL)  ---  [BonkNote]
    • [PDF-104p,  VIDEO - Error] - <mp3, mp4> - R 
    • ACLI / Prudential - Arthur F. Ryan, Chairman, American Council of Life Insurers and Chairman and Chief Executive Officer, Prudential Financial
    • CFA - J. Robert Hunter, Consumer Federation of America - 31p
    • IMSA - Brian K. Atchinson, Executive Director, Insurance Marketplace Standards Association 
    • NAIC - Gregory Serio, Chair, Government Affairs Task Force, National Association of Insurance Commissioners and Superintendent, New York Department of Insurance
    • Error - banking.senate.gov/hearings/examination-and-oversight-of-the-condition-and-regulation-of-the-insurance-industry
    • Senate - Committee on Banking, Housing and Urban Affairs
  • (p1-2) - Chairman Richard Shelby (R-AL)
    • With insurance playing such a meaningful role for consumers and the economy, I think it is our responsibility to consider some basic questions about the industry.
      • For instance: Is it financially sound and able to meet its responsibilities, that is, the industry?
      • What is the nature of the prevailing business and operational conditions?
      • Finally, what challenges will the industry face as it moves into the future?
    • As I noted previously, insurance is a very important industry.
      • Because of its importance to the economy, it has long been subject to an intricate regulatory scheme.
      • I look forward to beginning a thorough review of it with our witnesses this afternoon.
    • As an aside, I want to mention that Senator Sarbanes and I are sending a letter to the General Accountability Office requesting an... examination of the troubling reports that military personnel were sold insurance and mutual funds that appear to have excessive premiums coupled with minimal benefits.
  • (p51) - Gregory SERIO. Superintendent, New York Department of Insurance -  Price is a factor. Price should not be the leading factor on it. It should be a factor. I will go to this issue.
    • Just a few years ago, we had this thing called vanishing premiums, where people were given a promise that their premiums were going to go away, and they were going to have this insurance coverage forever or for as long as they were told they were going to have it.
      • That did not pan out, because those interest assumptions were wrong, because those other investment income assumptions were wrong over the duration of that policy.
    • And we had to go back and rethink how it is that the companies are not only structuring these products but how they are selling them.
    • And I think what has been happening is that this notion that the public is going to save money a little bit here, a little bit there is a hard thing to do when you are talking about a product that you need to have guaranteed at the end of the day
  • (p68) - J. Robert Hunter (CFA) - Consumers, who over the last 30 years have been the victims of vanishing premiums....