During the December 8 Life Actuarial Task Force& meeting, the Index Universal Life Illustration (A) Subgroup reported on its findings regarding IUL illustrations following the implementation of Actuarial Guideline 49-A. The...more
The NAIC groups working on illustration issues reported little activity at the 2021 NAIC Summer National Meeting.
The Life Insurance Illustration Issues (A) Working Group’s (Life Illustration WG) charge has been to...more
In December 2020, by amending the Standard Nonforfeiture Law for Individual Deferred Annuities (Model 805), the NAIC gave the green light to lower the minimum standard nonforfeiture rate to 0.15% in response to the persistent...more
On December 9, 2020, the NAIC Executive Committee adopted provisions to section 4(H) of the NAIC Unfair Trade Practices Act (Model 880) allowing insurers and producers to provide consumers with value-added products and...more
In 2020, the financial services industry and regulators adjusted to new norms of social distancing, electronic document delivery, and electronic transactions. Regulators are recognizing the gap between advancements in...more
Just in time for the holidays, the Innovation and Technology Task Force (Innovation TF) and the NAIC Executive (EX) Committee adopted revisions to Section 4(H) of the NAIC Unfair Trade Practices Act (Model 880). ...more
As the year of COVID-19 closes, NAIC groups are adopting their charges for 2021. Especially notable are the following: LATF’s Indexed Universal Life Illustration Subgroup will:
This group will finalize its white paper on...more
It looks as if 2021 will be a busy year as states move to implement the NAIC 2020 revisions to the Suitability in Annuity Transactions Model Regulation (Model 275), or other duty of care measures. The below chart outlines the...more
The NAIC Virtual Summer National Meeting marked that it is time to get back to school for a number of annuity and life disclosure and illustration initiatives. Both regulators and insurers will need to sharpen their pencils...more
The NAIC and the Interstate Insurance Product Regulation Commission (“Compact”) are cooking up various initiatives that will impact life and annuity issuers. Below is the spread of the different issues....more
The rebating drafting group of the NAIC’s Innovation and Technology (EX) Task Force (“Innovation TF”) has been busy all summer working on proposed changes to section 4(H) of the NAIC’s Unfair Trade Practices Act (UTPA). On...more
While everyone may be growing weary, the work to revise the state insurance standard of care for annuity transaction recommendations is not quite finished. ...more
As accelerated underwriting (AU) and artificial intelligence (AI) begin to turn life underwriting upside down, several NAIC working groups are seeking to bring order to the disruption: the Big Data (EX) Working Group (“Big...more
9/4/2020
/ Artificial Intelligence ,
Big Data ,
Data Management ,
Insurance Regulations ,
Life Insurance ,
NAIC ,
Popular ,
Regulatory Agenda ,
Third-Party Service Provider ,
Underwriting ,
Working Groups
While everyone was working from home, the NAIC's Innovation and Technology (EX) Task Force (Innovation TF) was busy creating proposed new game rules on rebating. ...more
6/26/2020
/ Comment Period ,
Consumer Insurance Products ,
Financial Services Industry ,
Insurance Regulations ,
Life Insurance ,
NAIC ,
Rebates ,
Sandbox ,
Unfair or Deceptive Trade Practices ,
Unfair Trade Practices Act ,
Value-Added Services
On June 3, 2020, Florida’s First District Court of Appeal issued a 2–1 decision in Patronis v. United Insurance Company of America, reversing a 2018 trial court decision in which life insurance companies had successfully...more
The Accelerated Underwriting (A) Working Group (AU WG) sprang into action during the first part of the year learning about the landscape of insurers' use of algorithms in underwriting and potential issues of such use, holding...more
The comments by regulators during the NAIC Artificial Intelligence (EX) Working Group (AI WG) calls provide insight into regulators' views on insurers' use of artificial intelligence and may foretell areas for future...more
Recognizing that the NAIC’s model consumer data privacy laws have not been revised since 2017, the NAIC Privacy Protections Working Group (Privacy WG) is dusting off the NAIC Insurance Information and Privacy Protection Model...more
On February 13, 2020, the NAIC Executive Committee adopted revisions to the Suitability in Annuity Transactions Model Regulation (#275) (Revised Suitability Model), which incorporates a best interest standard of conduct for...more
Several NAIC groups continued addressing issues related to innovation in the life insurance industry as follows...more
2/12/2020
/ Acceleration ,
Artificial Intelligence ,
Big Data ,
California Consumer Privacy Act (CCPA) ,
Consumer Insurance Products ,
Consumer Privacy Rights ,
Data Collection ,
Data Management ,
Innovation ,
Insurance Regulations ,
Licensing Rules ,
Life Insurance ,
NAIC ,
Personal Data ,
Third-Party Relationships ,
Underwriting ,
Vendors ,
Working Groups
For decades, life insurance has been viewed as just providing benefits to those named as the beneficiary. As we enter the new decade, insurers are changing this narrative....more
On December 30, 2019, the Life Insurance and Annuities (A) Committee approved a revised Suitability in Annuity Transactions Model Regulation (Revised Suitability Model), ending a flurry of activity over the past year....more
2/11/2020
/ Annuities ,
Best Interest Standard ,
Conflicts of Interest ,
Consumer Insurance Products ,
Disclosure Requirements ,
Duty of Care ,
Insurance Regulations ,
Life Insurance ,
NAIC ,
Required Documentation ,
Safe Harbors ,
Securities and Exchange Commission (SEC) ,
Suitability Rule ,
Supervisory Guidance
Arizona jumped out front of the pack with the introduction of Senate Bill No. 1557, titled "Annuity Transactions; Requirements," which would amend Arizona's suitability requirements for annuity transactions. Senate Bill No....more
Since mid-2018, the NAIC’s Innovation and Technology (EX) Task Force (Innovation TF) has been considering how state anti-rebating laws impede insurers and producers’ ability to offer innovative products and services to...more
Like a game of whack-a-mole, new or existing NAIC groups are being tasked to consider the various regulatory issues that are popping up from insurance innovation....more
10/11/2019
/ Annuities ,
Artificial Intelligence ,
Best Practices ,
Big Data ,
Consumer Insurance Products ,
Consumer Privacy Rights ,
Financial Services Industry ,
Insurance Regulations ,
Life Insurance ,
NAIC ,
Regulatory Requirements ,
Regulatory Standards ,
Sandbox ,
Underwriting