NU Online News Service, Feb. 21, 3:58 p.m. – The National Association of Insurance Commissioners, Kansas City, Mo., has released a new working draft of a model act and a model regulation that address the suitable sale of life insurance and annuity products.
“We have a good talking document,” says Utah Insurance Commissioner Merwin Stewart, who is spearheading the development effort.
The public will get an official chance to talk about the draft in March, in Atlanta, at the NAIC spring meeting.
Regulators at the NAIC began developing the new draft after an earlier version, the Life Insurance and Annuities Suitability model act and regulation, ran into opposition from insurers, producers, consumer advocates and some regulators.
Regulators took a narrower approach to developing the new draft.
Stewart says the goal of the new draft is not to use a “best practices” approach, but to “set up minimum standards and requirements ? to be assured that standards are met.”