NAIC Model On Multiple Policy Searches Moves Ahead
A guideline for searching for multiple policies of deceased contract holders advanced two steps toward full approval by the National Association of Insurance Commissioners at its spring meeting earlier this month.
The proposed Life Insurance Multiple Policy model regulation has been debated for about two years. It could be adopted by the NAIC executive committee and plenary during the summer NAIC meeting.
The issue is a subset of attempts by regulators to establish guidelines for the sale of small face amount policies, those identified as $15,000 or less. During those efforts, it was determined by regulators that searches to see if deceased contract holders held more than one contract were not being properly pursued by some companies.
Consequently, an effort was begun to make sure that all policies that belong to a policy owner are identified.
The model had become mired in debate over a provision that would have provided a safe harbor for companies that followed its requirements.