Life insurance industry groups are still trying to shape a proposed model act amendment that could affect what advisors say to consumers.[@@]
The groups have sent a letter urging the National Association of Insurance Commissioners, Kansas City, Mo., to keep the language that the NAIC adopted in December 2004, when it approved an addition to the Producer Licensing Model Act.
The addition, which consisted of Section A of a multipart proposal, deals with disclosure of compensation arrangements to customers.
The NAIC withheld action on Section B, which would require “generic disclosure” of all compensation arrangements. The NAIC Executive Committee Task Force is evaluating Section B and is supposed to make recommendations about whether to keep Section B as is, amend it or drop it by March 31.