News

NAIC’s Reform of Actuarial Guideline 49 Helps – But Falls Short

Insurance regulators have put into effect – presumed effective after Dec. 14, 2020 – more conservative rules for illustrating the popular index-based Universal Life policies sold by dozens of life insurance carriers.  Revising illustration rules was last attempted in late Summer of 2015 via Actuarial Guideline 49 (AG49), but newer products and their illustrated projections…

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LICAC Proposes Life Insurance Consumers’ Bill of Rights

The Life insurance Consumer Advocacy Center (“LICAC”) has proposed a bill entitled the Life Insurance Consumers’ Bill of Rights, with the goal of protecting consumers from losing their savings in Life Insurance Investment Schemes.  The concept for the bill was first discussed with representatives of the California Department of Insurance in February 2020.  The reforms…

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The NAIC’s New Model Regulation Governing Suitability in Annuity Transactions Misleads and Fails to Protect Consumers

In the Spring of 2020, the National Association of Insurance Commissioners (“NAIC”) adopted a new “model regulation” that purports to protect consumers by toughening the standards that must be followed by agents and insurers selling annuities to consumers.[1]  The new model regulation, called the Suitability in Annuity Transactions Model Regulation (No. 275), was met with…

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