Interrogatories

  • Lonnie Milton Graul:  Don’t you think part of the response to the interrogatories might be the choice of the lesser of two evils?
    • An honest response might be, “The rates we are currently illustrating are not supportable because we illustrate on the portfolio rate and the portfolio rate is higher than the new money rate.
    • If everything else stays the same, the credited rate is going to go down.”
    • If you gave that answer to the question and were in a major company and your competitor or a consumer advocate gets a hold of that, they can say, “Look, they are telling you a lie.”
    • What is the alternative? — Give an incomplete answer, an incoherent answer?
      • This seems to be the norm.
    • An insurance regulator might think the answer was inadequate but that is three or four years from now when they do an examination.
  • Larry R. Robinson, ACLI: You have pointed out a very real danger. 

1988 – SOA – Actuarial Opinion on Non-Guaranteed Elements, Society of Actuaries – 12p

  • One thing that should be reconsidered is the purpose of the interrogatories.
    • If they are truly intended to comment on the appropriateness of company illustrations, then we might serve our purpose better by requiring actuarial certification of the illustrations themselves rather than burying that opinion in the company’s statutory annual statement.

— Bradley E. Barks

1993 – SOA – Sales Illustrations: We Can’t Life With Them, But We Can’t Live Without Them!, Society of Actuaries – 20p

NAIC - Model Laws and Regulations

  • (p32) - Scott Gilliam - Assistant Vice President and Government Relations Officer, The Cincinnati Insurance Companies - Be careful what you ask for when you ask for a Federal insurance code.
    • But I will say that the idea is somewhat intriguing since it would reserve the ultimate regulatory authority to the States for this reason.
    • As Mr. Iuppa said, the reason the NAIC came into existence was to try to create a set of uniform laws across the States for insurance. And those of us who attend the NAIC meetings four times a year see that with great fanfare they pass a model law, and then we all start placing bets on how many States will actually adopt it, and then of those, how many will tweak it their own little way.
    • So there is no model law. There are model ideas, but they never turn into model laws. So it is an intriguing concept.

2007 1030 - GOV (House) - Additional Perspectives on the Need for Insurance Regulatory Reform, Paul Kanjorski (D-PA)  ---  [BonkNote]

  • 1994 - SOA - NAIC Model Investment Law Update, Society of Actuaries - 24p
    • Larry Gorski
  • 1995 - SOA - NAIC Model Investment Law, Society of Actuaries - 20p
  • MDL-225 - NAIC - Managing General Agents Act - 24p
    • 1993-3, NAIC Proceedings
  • MDL-285 - NAIC - DISCLOSURE OF MATERIAL TRANSACTIONS MODEL ACT - MO-285-1 - 4p
  • MDL-695 - NAIC - Synthetic Guaranteed Investment Contracts Model Regulation - [GICs] - 32p
    • 1999 - Letter / Academy_Proposal - AAA to NAIC - Synthetic Guaranteed Investment Contracts Model Regulation, American Academy of Actuaries - 19p
  • MDL-790 - NAIC - Reinsurance Intermediary Model Act - 20p
    • 1993-3, NAIC Proceedings
  • Model 830 - NAIC - Valuation of Life Insurance Policies Model Regulation (Regulation XXX)
    • 2009 - 40p
      • Chronological Summary of Action
        • December 1994: Model adopted.
        • December 1998: Model amended.
        • September 2009: Model amended
    • 1995.pdf
    • 1998 - MDL 830.pdf
    • MO830.pdf
    • ST830_0.pdf
    • model-laws-project-history-830.pdf
  • MDL-884 - NAIC - Model Regulation for Complaint Records to be Maintained Pursuant to the NAIC Unfair Trade Practices Act - 6p
  • MDL-910: Market Conduct Record Retention and Production Model Regulation 
    • 1994.pdf
    • MO910.pdf
    • ST910.pdf
    • model-laws-project-history-910.pdf
  • Model Regulation for Partial Endowment type (Deposit Term) - 1980-2, NAIC Proceeedings
    • Ms. Edwards reported that the task force recommended the adoption by the (C3) Subcommittee of the Model Regulation for Partial Endowment type (Deposit Term) policies which was circulated in December, 1979, as an exposure draft. 
    • Following discussion and upon a motion duly made and seconded, the subcommittee referred this exposure draft to the Evaluation Life Insurance Cost Disclosure Task Force for consideration as to whether this type product can be treated under the Model Life Insurance Solicitation Regulation or whether a separate regulation must be used to properly disclose factors pertaining to this product.
  1. Adopted, Active
    • Model 568:  Military sales practices model regulation - 8p
      • ...separate file for a chart of state adoption of named model law. - 5p
    • Model 582:  Life Insurance Illustrations Model Regulation, MDL-582 - 38p
    • Model 580:   Life Insurance Disclosure Model Regulation, MDL-580 - 5p
      • Formerly Known As Life Insurance Solicitation Model Regulation, 1984-1
      • Life Insurance Buyer's Guide removed in 2018, 2018-3
    • Model 570:  Advertisements of Life Insurance and Annuities Model Regulation, MDL-570 - 30p
    • Model 880:  Unfair Trade Practices Act, MDL-880 - 51p
    • Model 585:  Universal Life Insurance Model Regulation, MDL-585 - 12p
    • Model 613:  Life Insurance and Annuities Replacement Model Regulation , MDL-613 - 36p
  2. Adopted, Not Active
    • Deceptive Practices in Life Insurance Model Regulation:
      1973 Proc. Vol.II p541
      1974 Proc. Vol.II p, 442 (amended)
    • Life Insurance Cost Comparison Interest Adjusted Index Model Regulation:
      1973 Proc, Vol. II p538
      1974 Proc .Vol. l. p.442 (corrected)
    • Model Life Insurance Replacement Regulation:
      1970 Proc. Vol. Ip. 345
  3. Not Adopted
    • Model Regulation Concerning the Sale of Life Insurance Products and Annuities. Life Insurance Products Coupled with Annuities Subgroup - Market Conduct Surveillance (EX3) Task Force, Market Conduct and Consumer Affairs (EX3) Subcommittee
      • "Discussion of Marketing of Life Insurance Products Coupled with Annuities." 1985-1, page 168.
      • Draft, Attachment FIVE-A, 1987-1, pages 146-147.
      • "Some of the earlier reported problems with combining life insurance products with annuities appear to have diminished. Disclosure provisions which were a key element in the proposed Life Insurance Coupled With Annuities Model Regulation were incorporated into the amendments to the NAIC Rules Governing the Advertising of Life Insurance. This charge appears to be completed." 1988-1, page 130.
    • Second Standard Nonforfeiture Law for Life Insurance
      • "The Nonforfeiture Law Working Group, consisting of five members of the actuarial task force and with a number of nonregulatory technical consultants, has been appointed to work on Project 3g, "Revision of Standard Nonforfeiture Law for Life Insurance, 1993-1, page 1004.
      • Second Standard Nonforfeigure Law for Life Insurance - Exposure : 6/22193, ATTACHMENT ONE-E, 1993-2, pages 1015-1028.
      • "With regard to the life nonforfeiture model, Ms. Lautzenheiser <actuary> saw the main problem as the difference between the fund-based (Universal Life) policies and the non-fund-based products."
  • Model Regulation to Define Standards and Commissioner's Authority for Companies Deemed to be in Hazardous Financial Condition
  • Model 520 - Life and Health Insurance Guaranty Association Model Act - 68p
    • Life and health insurance guaranty association model act: chronological summary of action - [link]
  • The National Association of Insurance Commissioners (NAIC) Investments of Insurers  Model Acts Govern Derivatives Transactions by Life Insurers
  • NAIC Model Open Competition Rating Law (First Draft, dated May 9, 1979). Section 9 of that model is entitled CONSUMER INFORMATION and reads: (David Swankin) -  (p533)

1980-2, NAIC Proc. 

  • We submit that the Model Annuity and Deposit Fund Disclosure Regulation and the Life Insurance Disclosure Model Regulation contain disclosure requirements that would explain to the prospect the relative significance of the life and annuity components.
  • Hence, the potential for the so-called "estate conservation" problem would be eliminated by the use of these models, because the applicant would then be an informed consumer.  (p151)

1987-2, NAIC Proc. 

  • Funded Plans of Life Insurance (Universal Life) and Annuities (Later Changed to Universal Life and Related Plans of Life Insurance and Annuities)
    • A. General Features
    • The Technical Staff Actuarial Group discussed the appropriateness of the name given to this topic on the

1982-1, NAIC Proceedings

  • NAIC - (EX3) Task Force - Market Conduct Surveillance - San Francisco - March 9, 1986
    • 1. Heard report on subgroup on insurance sales and student loans.
    • 2. Received as an exposure draft Model Regulation on Life Insurance Products Coupled With Annuities.

NAIC – Advertising

  • ADVERTISEMENTS OF LIFE INSURANCE AND ANNUITIES MODEL REGULATION – (MDL-570)
  • Rules Governing the Advertising of Life Insurance
  • Rules Governing The Advertising Of Life Insurance
  • At the June NAIC meeting in Boston, the Task Force announced that it was charged with the review of the Rules by the NAIC President Josephine Driscoll (Ore.).
  • The Oregon Division believed that revisions may be necessary to keep pace with the new generation of products.

1987-1, NAIC Proceedings

  • All advertisements are required to be truthful and not misleading in fact or by implication.
  • The form and content of an advertisement of a policy shall be sufficiently clear so as to avoid deception.
  • The advertisement shall not have the capacity or tendency to mislead or deceive.
  • Whether an advertisement has the capacity or tendency to mislead or deceive shall be determined upon reviewing the overall impression that the advertisement reasonably may be expected to create upon a person of average education or intelligence within the segment of the public to which the advertisement is directed.  (p569)

2004 –  NAIC – Market Conduct Examiners Handbook – 1582p

  • Market Conduct Surveillance (EX3) Task Force
  • 5. Report of Subgroup on Life Advertising Issues
    • Dick Rogers, as chair of the subgroup, called upon Tony Spano (American Council of Life Insurance) to speak to amendments to the NAIC Model Rules Governing the Advertising of Life Insurance.
      • Mr. Rogers noted that amendments to the model had been adopted in December 1987 but that technical amendments were expected.
    • Mr. Spano submitted a written report entitled “Statement on Behalf of the American Council of Life Insurance to the NAIC Market Conduct Surveillance (EX3) Task Force, June 13, 1988” – (Attachment Two-3p).
      • Mr. Spano summarized the report stating that the amendments he proposed (attached to his report) involve a method known as the “range approach” which would govern the use of sales illustrations.
    • Mr. Rogers thanked Mr. Spano for his report and moved that the report be received and that the amendments be submitted for exposure at this time for consideration at the December 1988 national meeting.
    • The task force then heard from William Albus (National Association of Life Underwriters) who commented that if the so-called “range approach” were adopted, it would not necessarily be beneficial.
      • While he asked to reserve further comment as the proposal is further considered, the NALU was opposed to the amendments.
      • However, Mr. Albus noted his support for the current model and support for its continued adoption in the jurisdictions.

1988-2, NAIC Proc.

NAIC – National Association of Insurance Commissioners

  • NISC – National Insurance Supervisory Commission
  • 2021 – NAIC – Legislative Priorities – 1p – <Bad Link>
    • Support Legislation to Help Protect Policyholders During an Insurance Receivership
      • Current law provides no deadline to the federal government for filing claims in an insurance receivership, causing proceedings to drag on for years and reducing recoveries for insurance consumers.
      • Congress should support NAIC proposed legislation that would require the federal government to file claims it may have against insolvent insurance companies within a specified time consistent with bankruptcy proceedings.
    • Privide State Insurance Regulators a Vote on the Financial Stability Oversight Council (FSOC) (H.R. 3099)
      • The insurance sector is the only financial services sector whose primary regulator is not a voting member of the FSOC.
      • The Primary Regulators of Insurance Vote Act (H.R. 3099) would grant state regulators full participation on FSOC by allowing them to vote.
    • Oppose Preemption of State Insurance Data Privacy and Data Security Standards
      • Federal data privacy and security legislation should acknowledge the state insurance regulatory framework and not undermine state laws and regulations to protect the best interests of insurance consumers.
  • Issue – General
    • Cost Disclosure, Illustrations, Non-forfeiture / Valuation, Consumer Protection, Solvency, Market Conduct, Valuation, Market Analysis, 
  • People
    • Current
      • Mary Mealer
      • Richard Wicka
      • Fred Andersen
      • Sarah Neil
      • Teresa Winer
    • Past
      • Huff
      • David Lyons
      • William Hager
      • Robert Wilcox
      • William Hager

      • Larry Gorski