Project - NAIC - Snippets - 2015

  • 2015 0329 - NAIC Proceedings - LIAC, Life Insurance and Annuities (A) Committee
    • Appointed a New Working Group to Revise the Life Insurance Buyer’s Guide.
    • Ms. Matthews said the Committee has a 2015 charge to
      • review and consider revisions to the Life Insurance Buyer’s Guide (Buyer’s Guide) in conjunction with the Life Insurance Disclosure Model Regulation (#580).
  • 2015 0416 - NAIC - LATF, Life Actuarial Task Force, Conference Call
    • 1. Adopted the Proposed Actuarial Guideline for IUL Illustration
    • Mr. Andersen (Chair - MN) reviewed a comment (Attachment Eleven-C) from Brian Lessing (AXA) related to a product for which additional charges led to a higher investment return.
    • Mr. Andersen ... noted the issue was vetted earlier by regulators and the industry.
      • He said it would be nearly impossible to create a standard that would treat different products equally without causing other problems.
  • 2015 0507 - Life Actuarial (A) Task Force - Conference Call
    • 4. Appointed the IUL Illustration (A) Subgroup to Consider Post-Adoption Enhancements to AG 49
      • Mr. Boerner appointed the IUL Illustration (A) Subgroup to consider enhancements to Actuarial Guideline XLIX—The Application of the Life Illustrations Model Regulation to Policies with Index-Based Interest (AG 49). Mr. Andersen agreed to chair the Subgroup. Regulators interested in becoming members were asked to contact NAIC staff.
  • 2015 0515 - Letter - Brian Lessing, AXA Equitable to NAIC (LATF)
    • However, we believe that all sections of the guideline should apply to all inforce life insurance illustrations after some effective date, regardless of when the policies were sold, since if the new limitations on the illustrated crediting rate are appropriate for new business, similar reasoning implies that they should also be appropriate for all inforce policies.
  • 2015 1120 - NAIC Proceedings - LIAC, Life Insurance and Annuities (A) Committee National Harbor, Maryland - (6-3)
    • ...the Committee set a 30-day public comment period to receive comments from stakeholders on their issues and concerns with life insurance illustrations and the Life Insurance Illustrations Model Regulation (#582). In response, she said the Committee received comments from:
      • American Academy of Actuaries (Academy) - 3p
      • American Council of Life Insurers (ACLI) - 2p
      • California Department of Insurance - 1p
      • Massachusetts Mutual Life Insurance Company (MassMutual) - 1p
      • 2015 1012 - NAIC Consumer Cepresentatives - 1p
      • State Farm - 1p
    • Mr. Schwartzer said that absent specific suggested revisions, he would urge caution in opening Model #582 for revision. He suggested tabling the discussion for now until the Committee receives specific suggested revisions. Ms. Froment expressed support for Mr. Schwartzer’s comments.
    • Bruce Ferguson (ACLI) said more than 40 states have adopted Model #582. He noted that, in its comment letter, the ACLI suggests enhancing simplicity and transparency of the narrative summary in Model #582 to reflect the significant changes in the marketplace since Model #582 was adopted 20 years ago, including the demographics of consumers who buy life insurance, the product designs developed to meet the changing needs of consumers and the technology consumers use to obtain information about life insurance products.
    • Commissioner Gerhart noted that some of the comments appear to merit some review of Model #582. Director Ramge agreed and made a motion, seconded by Commissioner Gerhart, that the Committee establish a new working group with a 2016 Proposed Charge to explore how the narrative summary required by Section 7B of Model #582 and the policy summary required by Section 5A(2) of the Life Insurance Disclosure Model Regulation (#580) can be enhanced to promote consumer readability and understandability of these life insurance policy summaries, including how they are designed, formatted and accessed by consumers.
    • Mr. Regalbuto (NY) expressed support for opening Model #582 to look at issues related to AG 49. Regalbuto asked if appointing a new working group to look at the narrative summary provision in Model #582 and the policy summary provision in Model #580 addressed the Committee’s commitment to level the playing field among insurers. Commissioner McPeak said addressing that issue is still in progress.