TEST: NAIC Life Insurance and Annuities Committee Report: July 15
Jul 16, 2008
On Tuesday, July 15, 2008, the National Association of Insurance Commissioners (â€œNAICâ€) Life Insurance and Annuities Committee (â€œCommitteeâ€) held a meeting to discuss comments received from interested parties regarding the July 9, 2008 draft of the proposed Model Regulation on the Use of Senior-Specific Certifications and Professional Designations in the Sale of Life Insurance and Annuities (â€œModelâ€).
Regulators from Florida, Connecticut, Iowa, Minnesota, Missouri, Nebraska, New York, Washington D.C., and Wisconsin were in attendance.
Committee discussion focused on two comments: the exception of people holding valid academic titles from Model section five, titled Prohibited Users of Senior-Specific Certifications and Professional Designations; and a proposed specific mention of the Financial Industry Regulatory Authority (â€œFINRAâ€) as a named securities regulatory agency.Â Â
After discussion about the merit of including an academic title provision in the Model language, the Committee determined that since no reports of abusive sales and marketing practices toward seniors have been filed against researchers from academic institutions or other members of the academic community, the Model language addressing this issue should be stricken.Â Removal of this language also will help to make the NAIC Model consistent with the North American Securities Administrators Association (â€œNASAAâ€) Model Rule on the Use of Senior-Specific Certifications and Professional Designations.Â The need for consistency between the NASAA and NAIC Models was stressed by Committee members.Â Â Â
After discussion, the specific mention of FINRA as a named regulatory agency was not added to the Model language, inasmuch as securities regulation already is effected by each state.
The adopted Model draft is attached for your review.Â According the NAIC, â€œit is anticipated that this proposed Model will be considered for adoption by the full NAIC membership either at the NAIC Fall National Meeting in DC or sometime just prior to that meeting.â€
An update from the NAIC Consumer Guides Subgroup (â€œSubgroupâ€) regarding proposed revisions to the Buyerâ€™s Guide listed in Appendix A of the Annuity Disclosure Model Regulation was given.Â The Subgroup has drafted a Buyerâ€™s Guide for fixed-deferred annuities, and has opened it for comments until August 4, 2008.Â Â The fixed-deferred annuities Buyerâ€™s Guide draft is attached for your review.Â Â
The meeting was then adjourned.
Should you have any questions or comments, please do not hesitate to contact Colodny Fass.
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