The National Association of Insurance Commissioners adopted amendments to the Viatical Settlements model act during its summer meeting here.
The amended model was the first to be adopted under a new model law policy initiated by the organization, based in Kansas City, Mo., and much of the discussion prior to its vote related to process. In fact, Nevada, New York, Montana, Washington and Virginia abstained from voting for the model because of process reasons. California had also indicated it would abstain, but was not among the states named after the vote. New York cited the need for greater privacy protections in the model.
The concern with process focused on a 2-point requirement for voting for a model: the belief that the substance is worthy and a commitment to bring the model back to a commissioner’s home state and actively work for its passage there. Commissioners wanted a clearer sense of what commitment meant.
Jim Poolman, North Dakota insurance commissioner, who was very involved in the model’s development, said if commissioners get hung up on the process rather than focus on the public policy merit of the model and other models that are developed, then it will “absolutely cripple the organization.”