NAIC Plenary May Vote on Annuity Disclosure, STOA Items

The proposed STOA bulletin would warn insurers about the safeguards needed to prevent parties from helping consumers buy annuities solely for the purpose of selling the guaranteed benefits to investors.

The proposed bulletin recommends that insurers consider adjusting commissions if an annuity contract is annuitized or a death benefit is paid within its first policy year and there is evidence that the contract was part of a STOA arrangement.

Insurers also should put questions about how consumers will pay for annuities on the applications, set up systems to flag questionable applications, and report any actual or potential STOA transactions to insurance regulators, according to a copy of the proposed bulletin posted on the NAIC website.

- Allison Bell

Other NAIC meeting coverage from National Underwriter Life & Health:

• ACLI to NAIC: Some Asset-Backed Securities are Different from Others
• NAIC Panel Adopts Annuity Disclosure Model Revisions
• MLR: Agent Allies May Take Indirect Approach
• NAIC Panel Approves Stranger-Originated Annuity Draft
• NAIC Task Force Exposes Working Capital Finance Note Proposal