On June 3, 2020, Florida’s First District Court of Appeal issued a 2–1 decision in Patronis v. United Insurance Company of America, reversing a 2018 trial court decision in which life insurance companies had successfully...more
The Accelerated Underwriting (A) Working Group (AU WG) sprang into action during the first part of the year learning about the landscape of insurers' use of algorithms in underwriting and potential issues of such use, holding...more
The comments by regulators during the NAIC Artificial Intelligence (EX) Working Group (AI WG) calls provide insight into regulators' views on insurers' use of artificial intelligence and may foretell areas for future...more
On February 13, 2020, the NAIC Executive Committee adopted revisions to the Suitability in Annuity Transactions Model Regulation (#275) (Revised Suitability Model), which incorporates a best interest standard of conduct for...more
Several NAIC groups continued addressing issues related to innovation in the life insurance industry as follows...more
2/12/2020
/ Acceleration ,
Artificial Intelligence ,
Big Data ,
California Consumer Privacy Act (CCPA) ,
Consumer Insurance Products ,
Consumer Privacy Rights ,
Data Collection ,
Data Management ,
Innovation ,
Insurance Regulations ,
Licensing Rules ,
Life Insurance ,
NAIC ,
Personal Data ,
Third-Party Relationships ,
Underwriting ,
Vendors ,
Working Groups
For decades, life insurance has been viewed as just providing benefits to those named as the beneficiary. As we enter the new decade, insurers are changing this narrative....more
On December 30, 2019, the Life Insurance and Annuities (A) Committee approved a revised Suitability in Annuity Transactions Model Regulation (Revised Suitability Model), ending a flurry of activity over the past year....more
2/11/2020
/ Annuities ,
Best Interest Standard ,
Conflicts of Interest ,
Consumer Insurance Products ,
Disclosure Requirements ,
Duty of Care ,
Insurance Regulations ,
Life Insurance ,
NAIC ,
Required Documentation ,
Safe Harbors ,
Securities and Exchange Commission (SEC) ,
Suitability Rule ,
Supervisory Guidance
Arizona jumped out front of the pack with the introduction of Senate Bill No. 1557, titled "Annuity Transactions; Requirements," which would amend Arizona's suitability requirements for annuity transactions. Senate Bill No....more
Since mid-2018, the NAIC’s Innovation and Technology (EX) Task Force (Innovation TF) has been considering how state anti-rebating laws impede insurers and producers’ ability to offer innovative products and services to...more
Like a game of whack-a-mole, new or existing NAIC groups are being tasked to consider the various regulatory issues that are popping up from insurance innovation....more
10/11/2019
/ Annuities ,
Artificial Intelligence ,
Best Practices ,
Big Data ,
Consumer Insurance Products ,
Consumer Privacy Rights ,
Financial Services Industry ,
Insurance Regulations ,
Life Insurance ,
NAIC ,
Regulatory Requirements ,
Regulatory Standards ,
Sandbox ,
Underwriting
The NAIC Annuity Disclosure (A) Working Group (Disclosure WG) and the NAIC IUL Illustration (A) Subgroup (IUL SG) continue to untangle the web of issues applicable to fixed index annuity and index universal life (IUL)...more
The NAIC and states are reviewing whether to flush those provisions of state anti-rebating laws that inhibit innovation in the insurance industry. The NAIC Unfair Trade Practices Act (#880) prohibits offering any premium...more
10/9/2019
/ Ancillary Agreements ,
Annuities ,
Consumer Insurance Products ,
Draft Guidance ,
Insurance Regulations ,
Legislative Agendas ,
Life Insurance ,
NAIC ,
Non-Discrimination Rules ,
Policy Terms ,
Proposed Legislation ,
Rebates ,
Regulatory Requirements ,
Risk Mitigation ,
State and Local Government ,
Unfair Trade Practices Act ,
Value-Added Services
States continue to puzzle together the duty of care financial professionals owe, or disclosures financial professionals make, to consumers. Ideally, states would ensure that the pieces fit together. However, as reflected in...more
As index universal life (IUL) and index annuity product innovation sprints ahead, regulators, running to catch up, are considering whether changes are needed to the NAIC’s Actuarial Guideline 49 and to its Annuity Disclosure...more
As previously reported in our October 9, 2018, client alert, the sands began shifting in late 2018 when the NAIC Big Data Working Group (Big Data WG) began questioning life insurer’s use of big data after a LIMRA survey found...more
On October 22 and 23, the NAIC Annuity Suitability (A) Working Group (Suitability WG) held an interim meeting to review comments received on the Suitability in Annuity Transactions Model Regulation (Model 275) (Suitability...more
10/29/2018
/ Annuities ,
Best Interest Standard ,
Conflicts of Interest ,
Disclosure Requirements ,
Employee Benefits ,
Fiduciary Duty ,
Financial Services Industry ,
Insurance Investment Products ,
Insurance Regulations ,
Life Insurance ,
NAIC ,
Securities Transactions ,
Suitability Requirements
At recent meetings, the NAIC's Big Data (EX) Working Group (Big Data WG) has shifted its gaze to the use of big data in life insurance underwriting. Before these meetings, the Big Data WG had focused on the impact of big data...more
At the 2018 NAIC Summer National Meeting, regulators continued their efforts to define the standard of care that applies to recommendations. This subject was discussed at both the Annuity Suitability (A) Working Group...more
10/4/2018
/ Annuities ,
Conflicts of Interest ,
Financial Services Industry ,
Insurance Industry ,
Insurance Investment Products ,
Insurance Regulations ,
Life Insurance ,
NAIC ,
Regulatory Oversight ,
Regulatory Requirements ,
Suitability Rule
On April 12, Florida Governor Scott signed Senate Bill 0966 into law. SB 0966 amends the insurance benefits provisions of Florida’s Uniform Unclaimed Property Act, Fl. Stat. Section 717.107. These amendments effectively...more
On December 15, the Florida Office of Insurance Regulation (OIR) issued an Informational Memorandum, OIR-15-08M (Memorandum) regarding the extension of annuity contracts maturity dates beyond their original date. The...more