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January 22, 2007 at 10:45 PM
The Interstate Insurance Product Regulation Commission might prohibit term life policy provisions that limit holders’ ability to assign policies or transfer ownership.
Members of the IIPRC management committee talked about those IIPRC product standards committee proposals today during a meeting.
The IIPRC will expose the proposals and other term life proposals for comment and could vote on them during a Feb. 23 hearing.
The IIPRC also is preparing to release its proposed 2007 budget Tuesday, and it could consider the budget for adoption during the Feb. 23 hearing, officials say.
The IIPRC hopes to begin accepting product filings by June, officials said during the management committee meeting.
The IIPRC’s product standards committee dealt with term life transfer standards in a memorandum issued Friday.
One recommendation in the memorandum, Recommendation 17, addresses individual term life policy assignment standards, and another recommendation, Recommendation 21, calls for similar changes in individual term life policy ownership standards.
Product standards committee members recommend that the IIPRC adopt the following language for assignment and similar language for ownership: “The policy shall not condition the owner’s right to assign the policy upon the owner’s prior receipt of an offer from the company or an affiliate to purchase the policy.”
