An amended draft of a viatical settlements model is headed for the National Association of Insurance Commissioner’s executive committee and plenary for possible full adoption.
In a surprise move, the draft was unanimously approved by the NAIC’s Life & Annuities “A” Committee. The 11-0 vote took place today during a conference call with over 60 participants.
After a discussion by representatives in which 3 new amendments were adopted, New Hampshire Commissioner and NAIC Vice President Roger Sevigny offered the motion to move the amended draft out of committee. North Dakota Insurance Commissioner Jim Poolman, who had spearheaded development of the draft, seconded that motion.
The 3 amendments incorporated language offered by the Office of the Comptroller of the Currency so that the model would not violate the National Bank Act or Gramm-Leach-Bliley; included changes to the section defining a fraudulent viatical settlement act; and, under the disclosure to the viator section, deleted a point addressing provider compensation.
The motion was made right after Julie McPeak, chair of the “A” Committee and executive director of the Kentucky Office Of Insurance, said that it was not her intent to have further discussions on the draft during the June summer NAIC meeting but rather before the group’s executive committee and plenary. The model has been in discussion for over a year, and 4 or 5 drafts of an amended model have been produced, McPeak noted during the call.
Interested parties had requested further discussion, possibly at an interim meeting. Doug Head, executive director of the Life Insurance Settlement Association, Orlando, Fla., noted during the discussion that the model should be taken section by section and reviewed. Discussing major issues can result in more minute details being overlooked that are important to his organization, he said. When asked to conclude his remarks so that others could speak, he said, “I have found throughout the process that I’m wrapping up [comments] before I’m wrapped up.”
However, other groups such as the American Council of Life Insurers, Washington; the Association for Advanced Life Underwriting and National Association of Insurance and Financial Advisors, both of Falls Church, Va.; and National Association of Independent Life Brokerage Agencies, Fairfax, Va., support the amended draft model.