Regulation

  • Equal to the need for financially sound insurance products is the need for socially responsive insurance companies.
    • Consumers are not well served by a company that meets statutory reserve requirements but engages in unacceptable or morally-barren trade practices any more than they are served by companies that offer them pie-in-the-sky policies backed by assets worth no more than the paper on which they are written.
    • Therefore, the issues brought to the NAIC should not be so narrow as to overlook the relationship of product service and product soundness.
    • Both elements need to be balanced as decisions are made in a changing industry.

—  Lymcon L. Olson, Jr., NAIC Presidential Address

1983-1, NAIC Proc.

  • Since the past serves as a prologue,3 this Article shall survey traditional U.S. approaches to financial regulation-the three pillars of which are banking regulation, insurance regulation, and securities regulation. 

2010 – LR – The Role of Trust in Financial Regulation, by Ronald J. Colombo – 27p

  • It is also important state laws accommodate combination products (e.g., life insurance/LTCI; life insurance/annuity; annuity/LTCI, etc.) and that tax laws readily accommodate such products.

2013 – NAIC – State of the Life Insurance Industry: Implications of Industry Trends – 220p

  • NAIC – Kevin M. Mccarty, Commissioner, Florida Office of Insurance Regulation, On Behalf of the National Association of Insurance Commissioners
    • (p22-23) – The U.S. system is complicated, and a lot different than the rest of the world. And it is very difficult for the IMF and others to really understand the complexity of the U.S. system and the different parts that are involved.

2015 0429 – GOV (House) – The Impact of International Regulatory Standards, Blaine Luetkemeyer (R-IA)  —  [BonkNote]

1970s

  • 1973 / 1974 – GOV (Senate) – The Life Insurance Industry, Phillip Hart (D-MI) – 4 Parts  —  [BonkNote-Overview]
  • 1978 0807, 0814 and 0815 – GOV (House) – Life Insurance Marketing and Cost Disclosure, John Moss (D-CA)  —  [BonkNote]
    • 1978 12 – GOV (House-Report) – Life Insurance Marketing and Cost Disclosure Report Together with Dissenting Views, John Moss (D-CA)  —  [BonkNote]
  • 1979 0710 and 1017 – GOV (Senate) – FTC Study of Life Insurance Cost Disclosure, Howard Cannon (D-NV)   —  [BonkNote] 

1980s

  • 1980 – SOA – Insurance Regulation and Legislation, Society of Actuaries – xxp
  • 1983 0510, 0511 and 0728 – GOV (House) – Tax Treatment of Life Insurance, Pete Stark (D-CA)  —  [BonkNote]
  • 1985 0719 and 0722 Impact of Tax Reform on Insurance Industry) –
    • [PDF-GooglePlay-Part 7 of 9-1175p,  VIDEO-CSPAN]
    • Robert Beck (Prudential CEO) – Under some permanent insurance, contracts being sold today, the chances are you could stop paying after 7, 8, or 9 years and the insurance would remain in force for the rest of your life without further premium payments. (p6069) / (VIDEO-CSPAN – (at approx. 2:27:00-2:27:30)

1990s

  • 1991 0729 – GOV (House) – Regulation of Insurance Companies and the Role of The National Association of Insurance Commissioners, Ben Erdreich (D-AL)  —  [BonkNote]
  • 1995 – JIR / NAIC – Symposium on the Regulation of Life Cost Disclosure and Market Conduct, by Tom Foley and Carolyn Johnson – 48p
  • 1999 – JIR /NAIC – The Significance of Insurance Research to Those Involved in the Regulatory Processm by Lee Colquitt and Randy E. Dumm – 40p
  • 1999 – SOA – How Well Has State Regulation of Life Insurance Served the Marketplace?, Society of Actuaries – xxp

2000s

  • 2005 1117 – GOV (Senate) – A Review of the GAO Report on the Sale of Financial Products to Military Personnel, Richard Shelby (R-AL)  —  [BonkNote]

2010s

  • 2010 – LR – Rating Dependent Regulation of Insurance, by John Patrick Hunt, Connecticut Law Journal – p101-186p – 303p
  • 2010 – LR – The Role of Trust in Financial Regulation, by Ronald J. Colombo – 27p
  • 2011 0914 – GOV (Senate) – Emerging Issues in Insurance Regulation, Jack Reed (D-RI)  —  [BonkNote]
  • 2013 – SOA – Life Insurance Regulatory Structures and Strategy: EU Compared with US, Society of Actuaries – 92p
  • 2015 06 – SOA – Update on Regulatory Development, By Francis de Regnaucourt, fr-2015-iss101-de-regnaucourt – Society of Actuaries – 4p
  • 2015 09 – SOA – Update on Regulatory Developments, By Francis de Regnaucourt, fr-2015-iss-102 – Society of Actuaries – 28p 

2020s

  • 2022 – AP – Regulatory Competition in the US Life Insurance Industry, by Johnny Tang – 88p
    • 2024 0307 – UConn Law School – Regulatory Competition in the U.S. Life Insurance Industry, by Johnny Tang, Assistant Professor at Cornell – [VIDEO-YouTube-01:06:43]
  • 2024 0215 – GOV (House) – Protecting American Savers and Retirees from DOL’s Regulatory Overreach, Bob Good (R-VA)  —  [BonkNote]
    • PIABA – Joseph C. Peiffer, President, Public Investors Advocate Bar Association – 30p
  • 2011 1205 – NAIC to FIO
    • Insurance regulation can generally be described in two simple statements.
      1. Insurance regulators want insurers to have sufficient assets to make good on the promises they are selling…
      2. and they want insurers to treat their policyholders and claimants right.
    • The first part of the statement describes what is known as solvency regulation and the second part is known as market regulation.
  • (p12) – Daniel Schwarcz (Associate Professor, University of Minnesota Law School:
    • So, notably, you will see that my testimony was focused on different issues than many of the other witnesses, and that is because it is true that solvency regulation is in many ways the core of insurance regulation.
    • Now, I say this to contrast it with market conduct and other forms of consumer regulation…. 
  • (p13) – Terri Vaughan (NAIC-CEO / IA)
    • The first thing I want to say, I agree with Professor Schwarcz that the level of our collaboration in market regulation is behind the level of collaboration in solvency regulation and that is something we have been working on for a number of years, to try to increase the collaboration.  

2011 0914 – GOV (Senate) – Emerging Issues in Insurance Regulation, Jack Reed (D-RI)  —  [BonkNote]

  • Mr. Wright [Commissioner] reported that the NAIC had agreed to hire an actuarial consultant to assist the working group in its task.

1994-3, NAIC Proceedings

  • WORDS AND CONCEPTS
  • Consumer Protection, Disclosure, Illustrations, Manipulation, Market Analysis, Market Conduct, Replacements, Solvency, Standard Valuation Law, Standard Non-Forfeiture Law, Suitability, Working Groups, 
  • The challenge we face as actuaries is to lead the industry into the 1980s developing the products to pass along the investment success  . . and likewise, the investment failure, to develop the systems to support them and to work with and I must emphasize work with the state and Federal regulators to develop the environment to govern them.

—  Denise F. Roeder

1980 – SOA – Non-Participating Life Products with Non-Guaranteed Premiums, Society of Actuaries – 22p

  • 7Although insurance is generally exclusively regulated by state entities, some products offered by insurance companies are overseen by other regulators.
    • For example, variable life insurance may be considered an investment vehicle due to the ability of the policy owner to direct the cash values or accumulation funds into various investment instruments.
    • Unlike the other life insurance products, the variable life insurance product may have a dual regulatory enforcement; the life insurance portion regulated by the insurance regulator and the investment portion (cash value) regulated by securities regulators.

2005 – GAO – Financial Product Sales: Actions Needed to Better Protect Military Members – 88p –  [link]