State insurance regulators are getting ready to talk about investor-owned life insurance, term life producer licenses and life reserving rules.[@@]

Those are some of the issues that will be coming up in June in Boston, at the summer meeting of the National Association of Insurance Commissioners, Kansas City, Mo.

- The NAIC “A” Committee will be looking at efforts by organizers of investor-owned life insurance programs to change state insurable interest laws, according to North Dakota Insurance Commissioner Jim Poolman.

The changes can help turn life insurance into a source of charitable contributions. But some critics say investment companies are getting involved in a way that might cause Congress to take a close look at tax breaks for all life insurance contracts.

- The NAIC “D” Committee could advance a measure that would support the creation of limited licenses for agents and brokers who specialize in selling term life insurance, Poolman says.

Opponents say the measure would water down important producer education requirements and might decrease uniformity in state producer licensing rules. Supporters say the measure would help make term life available to more low-income and middle-income consumers who now rarely see licensed life insurance agents.

The National Conference of Insurance Legislatures, Albany, N.Y., will examine the topic at its own summer meeting in Newport, R.I., in July.

- The Life & Health Actuarial Task Force will consider Actuarial Guideline 38, a proposal that might provide temporary reserving guidelines for insurers that sell universal life products with secondary guarantees. Supporters of the measure say states should set temporary reserving guidelines while coming up with a new approach to UL secondary guarantee reserving.

Debate has focused on traditional reserving formulas, use of more complicated statistical models, and “principle-based” strategies that would rely on a combination of traditional formulas and statistical models.

“From my perspective, all efforts should be focused on the development of a long-term, principle-based solution instead of fighting over a short-term solution,” Poolman says.

Once the LHA task force acts on A.G. 38, the NAIC “A” Committee will look at competing proposals developed by insurers, Poolman says.