Members of the National Association of Insurance Commissioners have voted here at the group’s summer meeting to adopt several new models, including a revised annuities suitability model and a model audit rule.
The original Senior Protection in Annuity Transactions Model Regulation, also known as the Suitability model regulation, focused on sales of annuities to consumers age 65 and over.
The revised model covers all consumers, according to North Dakota Insurance Commissioner Jim Poolman, chair of the NAIC’s Life & Annuities Committee.
The NAIC also adopted the Life Insurance and Annuities Replacement model regulation.
The replacement model addresses term insurance conversions involving affiliates in the same insurance group. The model treats those conversions as transactions involving a single company rather than as transactions involving completely different companies, Poolman says.
The full NAIC membership also has adopted the Model Audit Rule, which would change financial reporting requirements for life insurers that are not subject to the reporting rules governing publicly traded companies.
The Model Audit Rule applies to life insurers, health insurers and property-casualty insurers.