Start Of Producer Fingerprint Pilot Project Is Imminent
Salt Lake City
The first phase of the pilot project to create a centralized producer fingerprint repository is scheduled to start on April 1, said Alaska regulator Linda Brunette at the spring meeting of the National Association of Insurance Commissioners here. The pilot includes five states: Alaska, California, Idaho, New York and Pennsylvania.
The fingerprint information will be included in a state producer licensing database and later could be added to a public database, she explained. While information about the fingerprints will be able to be shared with other states through the state producer licensing database, states other than those that requested reports will not be able to obtain information such as criminal history reports, according to a discussion of the working group.
Michael Lovendusky, a representative of the American Council of Life Insurers, said it was the understanding of industry that the information would be available so that if officers and directors of companies had to file fingerprints with states, they could do so in an efficient way.
However, Wes Bissett, representing the Independent Insurance Agents and Brokers of America, said that access to the fingerprints through a public database raised privacy concerns for his groups members.
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On another matter, changes affecting nonforfeiture provisions for limited pay long term care contracts were advanced by regulators at the NAIC meeting.
The changes were made to a long term care model regulation and an LTC guidance manual. One change, developed by Florida regulator Frank Dino, requires that a paid-up benefit be available to a consumer if the proportionate amount of payments made is at least 40%. The payment percentage is determined by taking the number of payments required and dividing it by the number of periods paid. Thus, for instance, if it was a 20-pay product, and 10 payments were made, there would be a 50% ratio. Since the percentage was at least 40%, the 40% trigger would be multiplied by 90% of the benefits in the policy. A contract holder would be entitled to 36% of whatever benefits the contract stated. It operates like a reduced paid-up contract, Dino explained.
Changes to the manual will reflect this change and others in order to provide better insight into regulatory requirements for LTCI, he added.
Reproduced from National Underwriter Edition, March 25, 2005. Copyright 2005 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.