NU Online News Service, March 17, 2004, 5:41 p.m. EST, New York – Insurance producers might not have to get separate licenses for brokering viatical settlement contracts.[@@]
The Life & Annuities “A” Committee at the National Association of Insurance Commissioners, Kansas City, Mo., has approved an amendment to the Viatical Settlements model regulation that would ease the proposed viatical settlement broker licensing requirements.
The committee made the move here at the NAIC’s spring meeting.
The NAIC’s executive committee and the full NAIC membership expect to vote on the draft at the NAIC’s summer meeting, in June.
The NAIC is developing the model regulation to help states implement the NAIC’s Viatical Settlement model act.
The model regulation amendment, introduced by Oklahoma Insurance Commissioner Carroll Fisher, states that a person who is licensed as a resident or non-resident life insurance producer for at least a year can operate as a viatical settlement broker.
The amendment drew opposition from the life insurance industry, support from the viatical settlement companies and mixed reactions from producer groups. Consumer advocate Kevin Hennosy of SpreadtheRisk.org, Kansas City, Mo., supported the change.
Life insurers were the first up at bat during a hearing, citing both philosophical and practical reasons for adopting the model without the change.
Failure to require separate licensing would create a blurring of lines between an industry focused on providing protection and one that focuses on making a profit from the purchase of life insurance contracts, according to Lynn Boyd, senior director of long term care issues with the American Council of Life Insurers, Washington.