The National Association of Insurance Commissioners, Kansas City, Mo., is poised to change its policy to require a vote of two-thirds of commissioners to pass model laws and to require a commitment of commissioners voting for a model to get it adopted in their states.
The policy change was discussed during a regulatory update at the Life Insurance Conference in Atlanta on April 17.
During the session, a question was raised about whether amendments to the Viatical Settlement Model Act would be adopted during the June NAIC meeting in San Francisco in early June.
Georgia Insurance Commissioner John Oxendine, a panelist, said that while the model has support among commissioners, a new policy requiring a two-thirds vote might pose a hurdle for the model’s full adoption. He then explained that the new policy, which he said was agreed to by members, is scheduled to be in place by the June meeting.
The new policy, he said in an interview, is part of an initiative by NAIC President Walter Bell, who is also Alabama commissioner, to reduce the likelihood that models adopted by the NAIC are only made law in 1 or 2 states.
If commissioners vote for a model, under the new policy they would have to “make a personal commitment to do everything they could to get it adopted in their states,” Oxendine explained.
Over the years, some commissioners have voted for models that they did not intend to adopt in their state, and the new policy would change that, according to Oxendine.
The issue was one of several raised, including travel underwriting and the sale of life insurance policies to military personnel, Oxendine said. A final regulation for the military sales model should be ready by the San Francisco meeting, he added.
Consideration of the policy change to “model laws and their framework” was confirmed by Scott Holeman, a NAIC spokesperson.
Currently, discussions are going on and no action has been taken, Holeman continued, but if action is taken, it could be around the time of the summer meeting in San Francisco.
The Life Insurance Conference is co-sponsored by LIMRA International; LOMA; the Society of Actuaries; and the American Council of Life Insurers.