A National Association of Insurance Commissioners working group is narrowing down issues related to a proposed two-page \u201cpolicy overview\u201d summary to accompany life insurance sales.<\/p>\n
Designed to \u201cenhance consumer understanding,\u201d the two-page summary proposal has been in the works for nearly three years. The Life Insurance Illustration Issues Working Group held a conference call Tuesday to address some remaining issues.<\/p>\n
Specifically, Birny Birnbaum, executive director of the Center for Economic Justice, reminded the group to \u201ckeep in mind what the purpose of a policy overview is. In our view, it\u2019s not an addendum to an illustration.\u201d<\/p>\n
Discussion drifted to how detailed the policy overview might become if some products offer multiple indexed options.<\/p>\n
\u201cIf we have 22 fixed accounts, could this get a little unwieldy?\u201d asked working group chairman Richard Wicka, deputy chief legal counsel for the Wisconsin Office of the Commissioner of Insurance.<\/p>\n
\u201cI hate to say you have to list just five of them, or five that the agent recommended,\u201d said Jodi Lerner, attorney for the California Insurance Department, \u201cbut that is a possibility.\u201d<\/p>\n
\u201cWe don\u2019t want to put the agent in the position of deciding what to disclose or not to disclose,\u201d Birnbaum quickly interjected.<\/p>\n
The group was receptive to a proposal to limit the policy overview to Model Law #580, the Life Insurance Disclosure Model Regulation. The working group charge calls for a duel policy summary reviews for both model laws #580 and #582 \u2013 the Life Insurance Illustrations Model Regulation.<\/p>\n
But Birnbaum argued that it is inappropriate for the policy summary to be a part of Model Law #582.<\/p>\n
The purpose of Model Law #582 is to provide guidance for illustrations, he noted. The purpose of Model Law #580 is to \u201cprovide information to enable consumers to shop and make informed purchases of the products that meet his or her needs,\u201d Birnbaum said in a comment letter.<\/p>\n
\u201cIt would not only be duplicative to include the same requirements for the narrative summary in Model 582, but would be inconsistent with the purpose of the narrative summary, which is to explain the illustration and not to provide consumers with a broader shopping tool,\u201d he wrote.<\/p>\n
The group, including a representative from the American Council of Life Insurers, agreed with Birnbaum\u2019s suggestions.<\/p>\n
However, Wicka said the group might need to return to the A Committee and revise its charge.<\/p>\n
The working group will likely hold another call to iron out the remaining issues. The full NAIC Fall Meeting is Nov. 15-18 in San Francisco.<\/p>\n
InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at john.hilton@innfeedback.com<\/a>. Follow him on Twitter @INNJohnH.<\/em><\/span><\/p>\n \u00a9 Entire contents copyright 2018 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.<\/strong><\/span><\/p>\n The post NAIC Working Group Closing In On Disclosure Overview Language<\/a> appeared first on InsuranceNewsNet<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" A National Association of Insurance Commissioners working group wants to “enhance consumer understanding” with a proposed two-page summary to accompany life insurance illustrations. The group is making slow progress on the proposal, with a few issues remaining to work out.<\/p>\n The post NAIC Working Group Closing In On Disclosure Overview Language<\/a> appeared first on InsuranceNewsNet<\/a>.<\/p>\n","protected":false},"author":578,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/12554"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/578"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=12554"}],"version-history":[{"count":1,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/12554\/revisions"}],"predecessor-version":[{"id":12556,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/12554\/revisions\/12556"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=12554"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=12554"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=12554"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}