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October 17, 2007 at 01:36 PM
Top officials at the National Association of Insurance Commissioners say they are addressing consumer advocates’ concerns about the process used to develop recent revisions to the NAIC’s Viatical Settlements Model Act.
Leaders at the NAIC, Kansas City, Mo., commented on the concerns Monday in a letter responding to 11 NAIC funded consumer representatives who wrote to the NAIC in September.
The consumer reps complained in the September letter about reports that David Poolman, the former North Dakota insurance commissioner and a leader in efforts to revise the model, may have had an undisclosed conflict of interest.
Poolman received a large campaign contribution from someone affiliated with the life insurance premium finance industry.
Poolman has denied doing anything wrong or having any conflicts of interest.
Life settlement and premium financing firm representatives say the revised Viatical Settlements model failed to deal adequately with the role of trusts in “stranger owned” life insurance arrangements, or efforts by investors to help consumers buy life insurance coverage in an effort to create policies that can be used in life settlement arrangements.
“The NAIC is aware that allegations have been made concerning conflicts of interest related to the revisions to the model,” NAIC officials write in their letter.
“The NAIC is addressing the allegations through appropriate channels and evaluating the available facts concerning these issues,” the officials write. “You should also be aware that, independent of any issues related to the model, the NAIC and its members are currently in discussions concerning revisions to the conflict of interest policy. These discussions are ongoing.”
