NAIC Viatical Model Passes Without Licensing Requirement
With mixed support from state insurance commissioners, a viatical settlements model regulation was adopted by the National Association of Insurance Commissioners during its summer meeting here.
Removal of a provision in the model requiring a separate license for producers who recommend or sell viatical settlements drew the concern of insurers who said it made consumers vulnerable to producers who would not understand or would misrepresent the product.
But representatives of the viatical and life settlements industry said removal of the provision was necessary to provide needed advice on a viable service.
Commissioners lined up on both sides of the issue. New York, Pennsylvania and Tennessee were among the states that expressed reservations about deleting the licensing provision from the model.
That provision would have provided state insurance departments with the opportunity to take action against abuses if an agent did not have a viatical license, according to Diane Koken, Pennsylvania insurance commissioner.