August 20, 2010

N.Y. Issues More Subpoenas in RAA Probe

Consumer advocates want insurance regulation to remain with states

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The New York Attorney General's office has widened its investigation of retained asset accounts (RAAs) to include several more insurers, according to our sister publications from National Underwriter.

The office has subpoenaed American International Group Inc., New York Principal Financial Group Inc. Aetna Inc., Lincoln National Corp. and CNO, formerly Conseco. They were added to a group of insurers previously subpoenaed that include MetLife Inc. and Prudential Financial Inc.

Meanwhile, two consumer advocates told insurance commissioners they would prefer to see regulation of insurance remain with the states, as opposed to a federal takeover.

Speaking before the National Association of Insurance Commissioners' (NAIC) Regulatory Modernization Task Force at the NAIC's summer meeting held here, Sonja Larkin-Thorne, an NAIC funded consumer representative, and Amy Bach, executive director of United Policyholders said they support a continuation of state regulation, but would like to see some changes in transparency.

Read a story about the NAIC investigation of deceased veterans' benefits from the archives of InvestmentAdvisor.com.

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