The National Association of Insurance Commissioners has adopted model acts and regulations ranging from long term care coverage to treatment of hybrid securities. The adoption of the models by the executive committee and plenary of the NAIC, Kansas City, Mo., was completed during the winter meeting here.
Among actions taken was adoption of:
–The long term care insurance model act and model regulation.
–The producer training model bulletin for policies issued under qualified state long term care insurance partnerships.
–The Unauthorized Transaction of Insurance Criminal model act.
–Changes to the market regulation handbook.
–Short-term treatment of hybrid securities.
–A resolution for military life sales and a charge to create a working group.
The LTC model, as detailed by Oregon Administrator Joel Ario, would require 8 hours of agent training and 4 hours on an ongoing basis, and would allow for more flexibility in long term care contracts.
Alice Molasky-Aman, Nevada commissioner, said the Unauthorized Transaction of Insurance Criminal model act, 3 years in the making, would make it a felony for an agent to knowingly sell insurance from an insurer that was not authorized in a state.
John Oxendine, Georgia commissioner and Mike Geeslin, Texas commissioner, described the purpose of the new working group on military sales. Oxendine said that SB 418, signed into law on Sept. 29, 2006, requires the NAIC to report to Congress by March 29 to recommend standards for products sold to servicemen. By Sept. 29, 2007, he continued, the NAIC has to report to Congress on how it implemented the regulation of the sale of products to servicemen and servicewomen.
Oxendine has sponsored a resolution at the NAIC supporting the insurance industry’s assistance of service personnel who are overseas and cannot readily make premium payments because of their service.
“It is of vital importance that we show Washington what we can do,” he said.