New York Department of Financial Services Superintendent Benjamin Lawsky said he hopes that his department’s focus on retained asset accounts (RAAs) will become a national standard, even though he said it will take some time for the industry to assimilate what New York has recently required.
New York State became the first state to ever require life insurers to pay beneficiaries of life insurance claims immediately, effectively prohibiting the use of retained asset accounts under a circular letter issued in February.
Lawsky’s efforts have a long road ahead in this goal, judging by the subject’s somewhat cool reception at the NAIC meeting. It is uncertain if the issue will be addressed at the next NAIC meeting. And when Lawsky spoke on the topic, no commissioner on the Life and Annuities (A) Committee joined him in expressing concern or comment.