Regulatory – Page 16

Policy Summary The <ACLI’s> Council’s Subcommittee on Cost Comparisons has proposed that cost disclosure requirements for universal life plans be generally similar to those for traditional life insurance plans as provided by the NAIC Model Life Insurance Solicitation Regulation. In addition, the Subcommittee is recommending disclosure for universal life plans in accordance with the “non-guaranteed…

Complaints (p33) – Bob CORKER (R-TN) – You know, there are very few complaints. I mean, life insurance is not what drives complaints at your State Insurance Commissioner’s officer, really, is it? It is just a small percentage, is it not? 2009 0317 – GOV (Senate) – Perspectives on Modernizing Insurance Regulation, Chris Dodd (D-CT) — [BonkNote]…

Illustrations – Uses 2015 0816 – NAIC – LIAC CC, NAIC Proceedings Birny Birnbaum (Center for Economic Justice—CEJ) also expressed support for the suggestion. He said it is important that state insurance regulators determine if illustrations are accomplishing what they are intended to accomplish, how they are being used and whether consumers understand them. Mr.…

Credibility MR. BARKS: Is credibility a better word? George COLEMAN: Yes, credibility in the sense that those numbers were developed using actuarially appropriate standards. — George Coleman, Prudential, ACLI, TRG-Technical Resource Group for the NAIC (Industry Advisory Group – Illustrations) 1994 – SOA – Problems and Solutions for Product Illustrations, Society of Actuaries – 28p 2009 – SOA…

State Insurance Regulators As a member of a regulatory body it is important that you become involved in self-education to increase your professional knowledge and keep current on developments within the ever-changing business of insurance. 1984-2, NAIC Proc. – Report Of The (EX3) Market Conduct Surveillance Task Force Working Group On Consumer Complaint Analysis Joel…

Consumer Representatives Birny Birnbaum Brenda Cude CFA-Consumer Federation of American Consumer Reports Members of the NAIC Market Conduct & Consumer Affairs Subcommittee Advisory Committee Mr. Hunter then discussed the matter of consumer representation on the committee and stated his viewpoint that if this truly is to be a market conduct and consumer affairs subcommittee, there…

Free Look / Cooling Off Period NAIC – CIPR-Knowledgebase – Model Regulation 582: Life Insurance Illustrations – [link] Question: …. if the regulation includes a 10 day free look provision, would staff also provide me with minutes and other official notes on the purpose of the free look period? Answer: … the “10 day free look provision”……

Disclosure Disclosure – Index The purpose of disclosure is to let the life insurance buyer know what he’s getting. — Russell R. Jensen 1977 – SOA – Cost Disclosure in Individual Life Insurance – Society of Actuaries – 18p …. I agree that failure to disclose not only misrepresents but also sows the seeds of destruction. …

Timing of Disclosures / Information to Consumers Since supplying this information can interfere with the sales process, it would appear much better to give the customer a ten day free look and supply the required information at time of delivery. — Paul J. Overberg 1976 – SOA – Cost Comparisons and Policy Language, Society of Actuaries -…

Regulation Activities-Based Regulation Deregulation Federal Government Entity Regulation Functional Regulation Insurance Regulation by the Courts / Legal Cases Market Conduct NAIC (National Association of Insurance Commissioners) Solvency States State vs Federal Regulation Twin Peaks Regulation Worldview Equal to the need for financially sound insurance products is the need for socially responsive insurance companies. Consumers are…