Life insurers are protesting a decision to allow viatical brokers to operate with an agents license without obtaining a separate viatical brokers license.
During the spring meeting of the National Association of Insurance Commissioners last month, regulators voted to remove a requirement requiring a separate viatical brokers license from a draft of the Viatical Settlement model regulation. (See NU, March 22.)
The model–without the provision–was adopted by the Life Insurance and Annuities “A” committee. It still needs to be adopted by the NAICs executive committee and plenary before becoming a fully endorsed NAIC model.
The draft was changed after a working group spent several years developing it. The viatical industry maintained that the requirement was unnecessary and would discourage the business of viatication. They added that an agent who initiated the purchase of life insurance knows the consumer best and should see that consumer through a decision to viaticate a contract.