Newport, Rhode Island
The National Conference of Insurance Legislators sidestepped the controversy about the proposed “term life only” agent license.
Members of NCOIL, Troy, N.Y., voted here at the group’s summer meeting to address the matter by looking at solutions for improving service to the underinsured life insurance market.
Some companies, including the Primerica unit at Citigroup Inc., New York, say creating a special license for agents who sell only term life insurance would improve service to middle-income and low-income consumers. Term-only proposal supporters say those middle-income and low-income consumers are of little interest to traditional life insurers. Proposal supporters say traditional life insurers now focus on selling to wealthy individuals.
When the National Association of Insurance Commissioners, Kansas City, Mo., held its summer meeting, the Market Regulation and Consumer Affairs “D” Committee advanced a resolution opposing a limited term license. The resolution had been adopted at the “D” Committee’s Producer Licensing Working Group but stalled in “D” after Rep. Shirley Bowler, R-78th District-La., and others challenged the measure.