NAIC Releases Travel Insurance Draft

The NAIC’s Life Insurance and Annuities Committee discussed travel underwriting during a December 2006 conference call and may look at the issue again during a a call later this month, officials say.

The new draft changes reflect comments made during the December 2006 conference call.

One provision would insert an amendment under the category of “unfair discrimination.” If unfair discrimination were found, the party committing the wrong would receive a copy of the findings in a cease and desist order, according to the model amendments draft.

A second provision would allow a commissioner to order a penalty of up to $10,000 for each travel underwriting violation. If travel underwriting violations were deliberate, a commissioner could order a penalty of up to $50,000 per violation, according to the draft.