A team of insurance regulators might reduce bias against lunch in annuity seminar warning notices.
The team could replace a warning against “‘free lunch’ seminars’” in an official sample notice with a warning against “‘free meal’ seminars.”
(Related: NAIC Focuses on Annuity Sales Practices)
The team — the Promoting Appropriate Sales Practices in Life Insurance and Annuities Working Group — began working on an update of the current sample notice in January.
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The working group is part of the National Association of Insurance Commissioners, a Kansas City, Missouri-based group for insurance regulators.
The NAIC can’t normally set rules for states. The NAIC can develop “models,” or samples of insurance laws, regulations, procedures and forms. States often use NAIC models when coming up with their insurance rules and forms.
The NAIC approved Model Number 278, the “Model Regulation on the Use of Senior-Specific Certifications and Professional Designations in the Sale of Life Insurance Annuities,” in 2008.
In 2008, the NAIC also adopted a model notice, “Consumer Alert ‘Preventing Abusive Practices: The Misuse of Senior Designations and “Free Lunch” Seminars.’” The model notice is supposed to help state insurance regulators use the model regulation.
The sales practices working group includes state officials. The working group also includes some of the people picked by the NAIC to speak for consumer interests in NAIC proceedings.
State officials and consumer reps had a general talk about marketing seminars Jan. 10. Several participants said they had seen flyers for annuity or insurance marketing seminars that failed to use the words “annuities” or “insurance,” according to conference call notes.
Since Jan. 10, the working group has posted several rewrites of the existing model notice, and several general comments on the model.