State legislators adopted a resolution to strengthen annuity suitability measures during the recent annual meeting of the National Conference of Insurance Legisators, Troy, New York.
During the meeting, held earlier this month in Napa, Calif., the issues of life settlements and market conduct oversight were also raised, according to Candace Thorson, NCOIL deputy executive director.
The resolution that was adopted supports expanding annuity suitability protections to all consumers, not simply those aged 65 or older.
The National Association of Insurance Commissioners, Kansas City, Mo., adopted a model–the Suitability in Annuity Transactions model regulation–that also expands protections for annuity sales.
The NCOIL resolution expresses support for the NAIC model and encourages state regulators to promulgate it.
NCOIL will also be revisiting its current version of the Life Settlements model act as part of a periodic review that it conducts on all its models, according to Thorson. That review could entail amending the existing model, creating an entirely new model to reflect new issues such as investor-owned life insurance, or supporting an NAIC model, she explains.
During the annual meeting, the NCOIL executive committee also adopted a final version of the Market Conduct Surveillance model law, which, among other things, asserts the state insurance commissioner’s authority over market conduct matters.
The model also says, however, that a commissioner may not conduct a comprehensive market conduct exam more frequently than once every 3 years. The model also calls for targeted exams to have a work plan and proposed budget. And, the model calls for the use of desk examinations and data requests prior to a targeted exam, to the extent possible.