March 15, 2010
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NCOIL Holds Annual Spring Meeting
Senior Vice Presidents Bill Anderson Represents NAIFA
The National Conference of Insurance Legislators (NCOIL) held its Spring Meeting on the Isle of Palms in South Carolina and the primary issues discussed of interest to NAIFA members were – annuities, annuities and annuities. Bill Anderson represented NAIFA at the meeting.
Stranger Initiated Annuity Transactions:
Members of the Life Committee were very animated in their discussion of this and very disturbed that annuities could be used in this fashion. The Committee agreed to continue to look into this issue and its next meeting in July.
The issue of STATS is garnering more interest and the NAIC has announced that it will hold a hearing on them in New York City on May 5.
Resolution Protecting Consumers’ Rights in Annuity Contracts:
The Industry Advisory Committee to IIPRC, the Academy of Actuaries, and independent insurance department actuaries all testified that these products were priced to the individual market and the cost of these products would increase dramatically if they went to the institutional market. The Legislative Advisory Committee and the Consumer Advisory Committee to the IIPRC objected to the Standards on the basis that a property right was being denied to the buyer in the secondary market.
After months of hearings and deliberations the IIPRC decided that companies would have the option of filing contracts with the termination provisions as long as appropriate disclosure was made to the individual purchasing the annuity.
Rep. Damron’s resolution calls for NCOIL to oppose the Standards and urges states to opt out of these standards and include in such opt-out language, a statutory provision which states that these rider benefits are assignable and shall not be terminated if the contract is sold, transferred or assigned. Click here for a copy of the resolution. Rep. Damron has introduced such a bill in Kentucky.
The resolution was discussed by the Committee but due to lack of time, it was held over to NCOIL’s next meeting in July.
Financial Services & Investment Products Committee:
The Committee also adopted a resolution to exclude insurers from systemic risk regulation being considered by Congress. Click here for the resolution.
The next NCOIL meeting will be held on July 8 -11 in Boston, MA.
NAIFA Staff Contact: William Anderson, Senior Vice President – State Government Relations, at (703) 770-8193.
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