2020

• 2020 01-? - NAIC - Retirement Security, Conference Call -  Brenda Cude / Karroll Kitt - Presentation
  • We want you to know that Financial Education is important, but that many other groups are better situated to design deliver and evaluate education than NAIC is.  
  • We think NAIC's most important role in Retirement Security is to make sure that consumers can safely buy well-designed insurance products in stable insurance markets.
  • Our attitudes, our beliefs... they really come from our life experiences and they point us to different actions...
• 2020 0303 - NAIC Proc. - IULISG – Indexed Universal Life Illustrations Subgroup, Conference Call
  • Fred Andersen (MN) - (Chair - IULISG – Indexed Universal Life Illustrations Subgroup)
    • Thanks to Donna Megregian for doing the research.
      • American Academy of Actuaries 
    • A lot of people don't understand why the illustration model regulation is the way it is.
• 2020 0312 -  NAIC - IULISG – Indexed Universal Life Illustrations Subgroup, Conference Call – [Bonk: Not in NAIC Proceedings]
  •  John Robinson (Minnesota):  I think that there are 2 wildcards that need to be considered....
    • And the other Wild Card is…we're working with the perceptions of someone and what we intend may not be what is exactly going on in their mind.  ....I guess, involved the Agent.  And the value of the Illustration …  is shaped a lot of times by how it's presented by the Agent.  And if you provide an Illustration that doesn't provide what the Agent thinks the prospect is looking for … then maybe that Illustration doesn't get put in front of the prospect.  ….those are two Big Wild Cards that affect everything we're trying to do here.
• 2020 0521 - NAIC - Life Actuarial (A) Task Force Conference Call
  • Consolidated Appropriations Act 2021
• 2020 0724 - NAIC - LIIIWG, Life Insurance Illustrations Working Group, Conference Call - NAIC Proceedings Version
  • [] Add
• 2020 0724 - NAIC - LIIIWG, Life Insurance Illustrations Working Group, Conference Call - [Bonk: Not in NAIC Proceedings]
  • Pat Reeder, ACLI - Idea of the Informed Consumer - 3 Broad Recommendations: 
    • 1) Consumer Testing - Fundamental Question: Will this form enhance the customer experience? 
    • 2)  Enhance the NAIC Electronic Consumer's Guide - NAIC Life Insurance Information - Example: SEC Summary Prospectus
    • 3) Have a larger discussion about the disclosure and buying process... backed with data driven studies to understand when consumers need what information in the buying process.  Consider the information available at each point in time.
• 2020 Summer- NAIC Proceedings - IULISG – Indexed Universal Life Illustrations Subgroup
  • Deputy Commissioner said New York would vote “No” on this guideline.
    • We acknowledge this is a small step in the right direction but feel it falls short of the standard we should impose to ensure consumers are protected.
    • We believe this proposal continues to allow the use of unrealistic and unreasonable crediting rates.
    • Illustrations are supposed to show consumers how an insurance product works and is expected to perform in the future.
    • We know insurers have used these illustrations to compete with each other and to sell equity indexed life insurance products by using unrealistic growth cash values.
    • This misleads consumers.
    • This causes consumers harm.
    • We feel it is critically important for the NAIC to advocate for more realistic and reasonable credit rates and we don’t believe this proposal achieves that.” (3-6)
• 2020 1110 - NAIC - LIAC, Life Insurance and Annuities (A) Committee -Virtual Meeting
  • Commissioner Ommen (IA) asked whether Mr. Birnbaum is aware of any consumer testing of illustrations or research that has
    already been done that looks at consumer understanding in this area.
  • Mr. Birnbaum said ..... he is not aware of any consumer testing in this area.