The National Association of Insurance Commissioners (NAIC) may roll back a move toward a new mortality table for guaranteed issue life insurance.
Some state insurance regulators say moving toward the new 2017 Commissioners Standard Guaranteed Issue Mortality Table, which was approved in 2018, would cause big problems for life insurers.
Regulators have proposed a canceling the shift to the 2017 table and moving back to the old 2001 Commissioners Standard Ordinary ultimate mortality table for guaranteed issue business issued after Dec. 31, 2019.
The NAIC is a Kansas City, Missouri-based group for state insurance regulators.
States often use NAIC models when developing their insurance laws, regulations and procedures.
“Guaranteed issue life insurance” is life insurance sold without use of medical underwriting. Many of the purchasers may be older people with health problems, who cannot qualify for ordinary life insurance but want to have modest amounts of life insurance available to pay for their funerals and help the beneficiaries with bills.
What Happened in Orlando
Concerns about the new guaranteed issue life mortality tables surfaced this week in Orlando, Florida, at the NAIC’s spring national meeting.