Committees and the task forces have advanced a number of life insurance measures here this week at the fall meeting of the National Association of Insurance Commissioners.
The Life Insurance and Annuities Committee at the NAIC, Kansas City, Mo., has approved a bulletin that would spell out why consumers should think before surrendering a life insurance or annuity contract issued by American International Group Inc., New York.
The template bulletin states that disparaging a company without legitimate proof in order to replace contracts is illegal.
Commissioners are concerned that producers will cite the recent headlines about AIG as a reason to move a contract at a time when, the commissioners say, the life insurance units of AIG are actually sound.
The Life Insurance and Annuities Committee also has approved AG GWP, an actuarial guideline for group term life waiver of premiums.
AG GWP provides advice on the use of new mortality and recovery tables for computing reserves for group term life waiver-of-premium products.
Other measures approved by the life committee include the 2009 Generally Recognized Expense Table factors, which will be used in life insurance illustrations, and Actuarial Guideline CCC, which provides guidance on minimum nonforfeiture values on policies with return-of-premium benefits features.
Members of the committee discussed the possibility of updating the NAIC’s Viatical Settlements Model Act.
Commissioners noted that the current model does not address the issue of stranger-initiated life insurance in trusts.