The National Association of Insurance Commissioners Annuity Disclosure Working Group is moving forward with efforts to tell consumers more about life and health insurance guaranty fund coverage.
The American Council of Life Insurers, Washington, opposes providing such disclosure.
Jim Mumford, chair of the working group and Iowa Insurance Division first deputy commissioner, concluded here at the spring meeting of the NAIC, San Diego, that the focus of discussion going forward should be on developing disclosure that works rather than on debating whether disclosure should be provided.
In a Jan. 21 letter to the working group, Mumford suggests drafting guidelines for more specific disclosure of guaranty fund coverage and limits while still conforming with Section 19.A of the NAIC Life and Health Insurance Guaranty Association Model Act, which prohibits persons from using the existence of guaranty associations for the purpose of sales.
“The need for additional information concerning guaranty fund coverage to policyholders when a contract is delivered…in this era when the life insurance industry is pushing for increased sales in annuities for retirement purposes, and the economic environment is volatile, is clear,” Mumford writes in the letter.