The quest for an answer to what constitutes a suitable life insurance sale will take a narrower focus as regulators develop a model regulation to bring the five-year debate to a final resolution, according to Merwin Stewart, Utah insurance commissioner.
Regulators huddled during the winter meeting of the National Association of Insurance Commissioners here last month to advance work on the issue. The model, according to Stewart, who is chair of the Life & Annuities “A” Committee, will recognize that “both insurers and producers have responsibilities that need to be considered.”
It should “clarify responsibilities that already exist,” he said.
The aim, he said, is products that are appropriately sold. What is being sought, he continued, is to satisfy regulators that there is a system in place. A set of standards that insurers follow will be a protection for the companies, he added, and if they document how they follow procedures, it will provide protection from legal issues, Stewart said.