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September 03, 2006 at 04:00 PM
Among the issues the American Council of Life Insurers says it will be monitoring when regulators meet shortly for the fall meeting of the National Association of Insurance Commissioners are principle-based reserving, hybrid securities and changes to viatical settlement regulation.
Regarding amending the Viatical Settlements Model Act and Regulation, Michael Lovendusky, ACLI associate general counsel, said there are two areas where there is divergence among interested parties. These are the definition of viatical settlements and Section 10 of the model that addresses prohibited practices. The ACLI would like to broadly define viatical settlements to include all practices and would like a two-year limitation on settlement of contracts after issuance, he says.
During a public hearing in July, North Dakota Commissioner Jim Poolman mentioned potential wording regarding a 5-year prohibition on settlement of life insurance contracts. ACLI is waiting to see if that wording will be available for the fall meeting and could have further comment at that point, Lovendusky says.
ACLI will also weigh in on travel insurance during a public hearing on the issue, particularly in light of outbursts of world violence, according to Lovendusky.
“ACLI supports existing and proposed state laws that track the NAIC Model Unfair Trade Practices Act and prohibit unfair underwriting actions, including those that might be taken on the basis of travel,” Whit Cornman, an ACLI spokesperson said in a statement. “ACLI would have concerns about any proposed legislation or regulation that would limit life insurers’ ability to treat their existing and prospective customers fairly and to classify risks in a financially prudent manner.”
