Edwards Angell Palmer & Dodge's Insurance and Reinsurance Department recently published its latest Newsletter, Insurance & Reinsurance Review - September 2010, which contains nine articles about various topics in the insurance and reinsurance industry. read more
|
Effective July 1, 2010, Florida joined several other states in reducing the liability of trustees of irrevocable life insurance trusts (“ILITs”), with the enactment of § 736.0902 - Non-application of prudent investor rule. The Florida prudent investor rule protections relieve the trustee from any duty to manage the life insurance as an investment. Further, it relieves the trustee from liability for any loss sustained with respect to the life insurance. read more
|
On the heels of an investigation by the Attorney General of New York Andrew Cuomo regarding the use of retained asset accounts [1] by life insurers, United States House Representative Deborah Halvorson (Ill.-D) recently introduced legislation that would require, among other things, beneficiaries of the Servicemembers’ Group Life Insurance program to receive financial counseling and disclosure information regarding life insurance payments. read more
|
As mentioned in our prior post, New York Attorney General Andrew Cuomo has begun an investigation into the alleged misuse of retained asset accounts by life insurance companies. This probe started with two of the largest life insurers and has now been widened to include six more. The latest subpoenas were sent on Friday, July 30th. read more
|
The U.S. Securities and Exchange Commission (“SEC”) has recently proposed regulations that would limit fund sales charges and increase disclosure requirements under Rule 12b-1. Rule 12b-1, adopted under the Investment Company Act of 1940, permits mutual funds to use a portion of fund assets to pay for the cost of promoting sales of fund shares, effectively eliminating sales load charges. read more
|
On 11 July 2010 the China Regulatory Commission (the CIRC) stated that it proposed to remove restrictions on insurance companies in China in deciding the assumed (or guaranteed) interest rates for "conventional" (non-participating) life insurance policies in order to protect consumers' interests and encourage innovation in the sector. read more
|
Spurred by media reports alleging deception by some life insurers in their use of retained asset accounts [1] for disbursing death benefits to the beneficiaries of fallen United States military personnel and the apparent lack of oversight by federal and state regulators, New York Attorney General, and gubernatorial hopeful, Andrew Cuomo has issued subpoenas to leading life insurers regarding their alleged “reaping [of] hundreds of millions in secret profits while misleading families into putting benefits into insurer controlled, low yield, potentially risky accounts.” read more
|
The week of July 19, 2010 was an interesting week for the insurance industry with developments affecting the industry as a whole and a proposal to regulate life settlements as securities at the federal level. read more
|
Speakers at the ALI-ABA’s annual conference on insurance and financial services regulation in Chicago offered extensive commentary on changes in enforcement strategies for insurance and securities fraud, in light of recent overhauls to the regulatory scheme. Representative panelists from the SEC and FINRA commented on federal enforcement strategies, while a state insurance commissioner’s representative opined about updates and changes in state-level enforcement. read more
|
This updates our June 23, 2010 blog posting. California State Senator Ron Calderon introduced Senate Bill 1242 (“SB 1242”) to amend California’s life settlement law which went into effect July 1, 2010. Click here for a description of the new law. read more
|
This updates our December 22, 2008 blog, and other related postings. In December 2008, the U.S. Securities and Exchange Commission (the “SEC”) adopted Rule 151A (the “Rule”) classifying equity-indexed annuities (“EIAs”) as securities, and subjecting them to federal regulation effective 2011. The Rule has been hotly debated, as some believe that EIAs are adequately regulated by states and that federal regulation would only result in additional costs in registering and selling the products. read more
|
Several InsureReinsure.com bloggers are attending the ALI-ABA Conference on Insurance and Financial Services Litigation in Chicago. Earlier today, one of the panels addressed recent developments in the area of class action certification, particularly in life insurance and annuities litigation. read more
|
The New York Insurance Department (“NYID”) prepared a draft circular letter (“Draft Circular Letter” or “Letter”) in early June, which, if finalized and issued, will require insurers to advise consumers of the implications of excess withdrawals from annuities with guaranteed minimum withdrawal benefits (“GMWB”). read more
|
New Hampshire Governor John Lynch (D) signed HB 660 into law which enacted life settlement legislation in New Hampshire effective June 14, 2010 (the “Act”). The Act is primarily based on the National Association of Insurance Commissioners’ model, and, among other things, imposes restrictions with respect to stranger-originated life insurance transactions (“STOLI”). read more
|
This updates our October 19, 2009, and our May 7, 2010 blog posts. On June 11, 2010, the California Insurance Department issued proposed regulations, on an emergency basis, to implement Senate Bill 98 (“SB”), which repealed existing viatical settlement statutes and enacted life settlement statutes. read more
|
In Farm Bureau Life Insurance Co. v. Chubb Custom Insurance Co. et al., the Iowa Supreme Court affirmed the district court’s ruling that Farm Bureau was not entitled to liability coverage in its disputes with two applicants that were HIV positive. read more
|
This updates our December 3, 2009 posting. The Texas Department of Insurance (“TDI”) has officially proposed regulations banning the use of discretionary clauses in insurance contracts. The regulations are the result of a petition filed by the Texas Office of Public Insurance Counsel (OPIC) on October 28, 2009 requesting the ban. read more
|
On May 13, 2010, Wisconsin Governor Jim Doyle signed into law Senate Bill 513 (“SB 513”) governing life settlements. read more
|
The California Department of Insurance (the “DOI”) issued a notice (the “Notice”) to education providers on April 1, 2010, setting forth the new education requirements for life settlement brokers. The Notice comes in response to California Senate Bill 98 (“SB 98”), signed into law on October 11, 2009, which repealed existing viatical settlement statutes and enacted life settlement statutes. read more
|
The Health Care and Reconciliation Act (the “Act”), signed into law on March 30, 2010, imposes a tax on annuity income to help pay for the multi-billion dollar reform package set forth in both the Act and the Patient Protection and Affordable Care Act, signed into law on March 23, 2010. Specifically, the Act imposes a 3.8% Medicare contribution tax on individuals who earn more than $200,000 a year, and couples who earn more than $250,000 a year. read more
|
On March 28, 2010, the National Association of Insurance Commissioners (“NAIC”) issued a press release announcing adoption of revisions to the existing Suitability in Annuity Transactions Model Regulation (the "Model"). read more
|
The Securities and Exchange (SEC), the United States Senate Special Committee on Aging Life Settlements, among other Congressional committees, and federal and state agencies throughout the country have intensified their inquiries on life settlements and the way insurance companies are pricing premiums as a result of the life settlement securitization asset valuations. read more
|
The New York Insurance Department has issued a proposed regulation that would prohibit life and health insurers from issuing policies that contain discretionary clauses (the “Proposed Regulation”). read more
|
|
|
The NAIC issued a press release (the “Release”) earlier this month announcing its intent to hold a public hearing on the emergence of stranger originated/owned annuity transactions (“STAT”). STATs are similar to stranger owned life insurance transactions (“STOLI”), which have been the subject of regulatory scrutiny for a number of years. read more
|
Chan Kin-por, legislator representing the insurance sector in Hong Kong's Legislative Council, recently told the South China Morning Post that many customers and insurance agents have urged him to seek a regulatory change to help the launch of yuan-denominated policies as many people believe that the yuan will appreciate in value over the next few decades and yuan life insurance policies may bring policyholders 20% to 50% growth in terms of investment returns and valuation gains. read more
|
According to the Statistics on China Insurance Business for 2009 recently published by the China Insurance Regulatory Commission (CIRC), total insurance premiums in China received in 2009 amounted to RMB 1.11 trillion, up 13.8% from 2008. read more
|
On 24 February 2010, Peter Smith, Head of Investments Policy in the Conduct Policy Division of the FSA, made a speech to the European Life Settlements Association clarifying its approach to TLPIs. read more
|
Earlier this month, the Obama Administration released its 2011 Budget and accompanying revenue proposals (“Revenue Proposals”) which set forth the means by which the U.S. Government proposes to pay for the items set forth in the 2011 Budget. This year, the Revenue Proposals include provisions that would modify the exiting life settlement reporting and tax calculation rules. read more
|
On February 3, 2010, the American Council of Life Insurers (“ACLI”), a Washington based trade association representing the life insurance industry, issued a policy statement recommending that the securitization of life settlements be prohibited by legislation or regulation. read more
|
The Connecticut Insurance Department issued a proposed regulation (the “Proposed Regulation”) relating to use of senior-specific certifications and professional designations in the sale of life insurance and annuities. The Proposed Regulation aims protect seniors from abusive sales practices and fraud and is based on the NAIC Model Regulation on the Use of Senior-Specific Certifications and Professional Designations in the Sale of Life Insurance and Annuities (the “Model”). read more
|
In Ms Jacqueline Power v (1) The Trustees of the Open Text (UK) Limited Group Life Assurance Scheme (2) Open Text (UK) Limited [2009] EWHC 3064 (Ch), the High Court considered whether either the trustee of an employee life assurance scheme or the employer that issued the scheme was under a duty to consider the level of cover provided under the scheme and whether the trustee was under a duty to consider whether the cover was appropriate. read more
|
In April 2009, the Minnesota Department of Commerce (the “Department”) summarily suspended the insurance licenses of Michael Antonello and the insurance agency for which he served as chairman, Wealth Management Advisors, LLC (“Wealth Management”), for alleged dishonest practices in connection with the sale of life insurance policies and related Stranger Originated Life Insurance (“STOLI”) transactions. read more
|
Earlier this week, the New York Legislature passed a bill establishing a comprehensive statutory framework for the regulation of life settlements. The legislation is based on a model law drafted by the National Association of Insurance Legislators (NCOIL). If the bill is signed by Governor David Paterson, New York would join the growing number of states regulating the life settlement market. read more
|
At the end of October, the Rhode Island legislature approved the Life Settlements Act ( Senate Bill 229 and companion House Bill 5199) (the “LSA”) which would establish procedures and requirements for life settlement transactions. The LSA was sent to the Governor for signature on November 4.
|
SEC Commissioner Mary L. Schapiro indicated on October 22, 2009 that life settlements are an "area of emerging interest" to the SEC. The Commissioner noted that seniors, who sell their life policies, may not understand the implications of those sales. read more
|
The National Association of Insurance Commissioners (“NAIC”), at the Executive/Plenary session of its Fall National Meeting, adopted revisions to the Standard Valuation Model Law (“Valuation Model”) replacing the existing formula based approach for reserving life insurance policies with a principles based approach. read more
|
This updates our September 15, 2008 blog post. On October 11, 2009, California Governor Arnold Schwarzenegger signed S.B. 98 (the “Act”), which targets stranger originated life insurance (“STOLI”) transactions. read more
|
According to industry reports, the US Securities and Exchange Commission has formed a multidisciplinary task force (“Task Force”) to investigate life settlements (i.e. the sale of life insurance products by policyholders to third party investors). read more
|
Yesterday, the New York State Insurance Department (“NYSID”) issued a press release announcing that it will hold public hearing on Wednesday, September 16, regarding life insurance and annuity sales practices. The hearing is particularly concerned with sales practices as they apply to seniors, and will focus on suitability (i.e. whether a particular product is appropriate for an individual consumer). read more
|
The United States District Court for the Eastern District of Wisconsin recently held that a beneficiary of a trust has standing to sue the life insurance carrier to collect policy benefits on an accidental death policy. read more
|
The New York Insurance Department issued proposed Regulation No. 192 (11 NYCRR) (the “Proposed Regulation”) establishing minimum reserve and nonforfeiture standards for preneed life insurance policies (i.e. policies that provide a prearrangement agreement for goods and services to be provided upon the death of the insured). read more
|
In July, Oregon Governor, Ted Kulongoski, signed into law Senate Bill 973 (as adopted, the “Act”), which modifies Oregon life settlement legislation. The Act was introduced at the request of the American Council of Life Insurers and is designed to restrict stranger-owned life insurance (“STOLI”) transactions in which unrelated third parties would purchase life insurance policies on the lives of “strangers.”
|
Last month, the New York Insurance Department’s Office of General Counsel issued Opinion No. 09-06-11 (the “Opinion”) which prohibits contingent annuity contracts on the grounds that such contracts constitute an impermissible form of financial guaranty insurance. read more
|
This updates our January 28, 2009 posting. Earlier this year, American Equity Investment Life Holding Company (“American Equity”), together with a coalition of insurance companies and independent marketing organizations, filed suit in the U.S. Court of Appeals for the District of Columbia Circuit (the “Court”) seeking to overturn Securities and Exchange Commission (“SEC”) Rule 151A which classified certain indexed annuities, previously regulated as insurance, as securities, thus subjecting them to federal, rather than state, regulation. read more
|
The UK Financial Services Authority published Policy Statement PS09/13 on 24 July 2009 confirming that proprietary life insurance companies will no longer be able to use their with-profit funds to meet future compensation and redress payments. read more
|
In Washington, DC, two new laws were enacted this month that will impact insurance coverage eligibility in same-sex marriages performed out-of-state. The Jury and Marriage Amendment Act of 2009, effective July 6, 2009, provides that “marriages legally entered into in another jurisdiction between two persons of the same sex shall be recognized as a marriage in the District.” read more
|
In its recently released General Explanation of the Administration’s Fiscal Year 2010 Revenue Proposals (the "Green Book"), the United States Department of the Treasury detailed the White House’s tax revenue proposals. Amongst a litany of proposed closures of tax loopholes and measures to combat under-reporting by way of offshore accounts and entities, there are several tax increases the White House aims to push through in order to fund its planned reform of the U.S. healthcare system.
|
The Financial Services Authority has published a consultation paper (CP09/18) in connection with the distribution of retail investments (including life products but excluding pure protection products: see below) - known as its retail distribution review (RDR). read more
|
On May 29, 2009, Nevada Governor Jim Gibbons signed into law Senate Bill 426, an act that affects the state’s insurance industry primarily by making changes as to how the state handles viatical settlements (the “Act”). The Act, which is consistent with the National Association of Insurance Commissioners (NAIC) Model Act, was passed by the state Assembly by a 37-5 vote. read more
|
On June 15, 2009, five trade associations (the American Council of Life Insurers, National Association of Insurance and Financial Advisors, National Association of Independent Life Brokerage Agencies, National Fraternal Congress of America, and the Life Insurance Council), which together represent the majority of the U.S. life insurance industry’s carriers and sales force, issued a joint statement (the “Statement”) supporting “responsibly crafted optional federal insurance regulation, with continued viable state regulation.” read more
|
On June 4, 2009, Representatives Gregory Meeks (D-NY) and Tom Price (R-GA) introduced H.R. 2733, the Indexed Annuities and Insurance Products Classification Act of 2009 (the “Bill”), in the U.S. House of Representatives. If adopted, the Bill would nullify Securities and Exchange Commission Rule 151A which sought to classify indexed annuities as securities and subject them to federal regulation. read more
|
On May 1, 2009, the Internal Revenue Service (“IRS”) issued Revenue Rulings 2009-13 and 2009-14 with respect to the federal income tax treatment of certain life insurance transactions, including life settlements. read more
|
On April 6, 2009, the Florida Office of Insurance Regulation (“FOIR”) issued a press release announcing that the U.S. District Court for the Northern District of Florida granted the FOIR’s motion to dismiss Coventry First LLC’s, a life settlement provider (“Coventry”), application for injunctive relief to prohibit the FOIR from examining its life settlement agreements with consumers outside of Florida. read more
|
Recently, the United States Treasury Department (the “Treasury”) has announced that certain life insurers that have acquired banks and thrifts are eligible to receive assistance from the Capital Purchase Program, a sub-program of the Troubled Asset Relief Program. read more
|
On March 30, 2009, Washington Governor Chris Gregoire signed into law Senate Bill 5671, An Act Relating to the Suitability of Annuities Sold in Washington (the "Act"). read more
|
On March 23, 2009, the New York Insurance Department issued a press release announcing introduction of a bill (the “Bill”) to regulate life settlements. read more
|
In September 2008, the New Jersey Legislature enacted Senate Bill 1165 (the “Act”) setting forth standards and procedures with respect to the direct solicitation of consumers regarding annuity products. The Act is designed to prevent the fraudulent and misleading marketing of annuity products by insurers, brokers and agents, and to provide standards for the disclosure of information about such products to consumers. read more
|
In a recent interview, New York State Insurance Department Superintendent and returning chairman of the National Association of Insurance Commissioner’s (“NAIC”) Life Insurance and Annuities Committee Eric R. Dinallo stated that in light of the current economic crisis he will be reevaluating NAIC’s regulations with respect to variable annuities. read more
|
This updates our September 3, 2008 post. On February 5, 2009, the Florida Office of Insurance Regulation (“FOIR”) released a report entitled, “Stranger-Originated Life Insurance and the Use of Fraudulent Activity to Circumvent the Intent of Florida’s Insurable Interest Law” (the “Report”), based on testimony and documentation presented public information hearing on the issue of stranger-originated life insurance which “[circumvent] the insurable interest laws” (“STOLI”) on August 28, 2008. read more
|
This updates our January 28, 2009 and December 22, 2008 blog postings. On February 10, 2009, the National Association of Insurance Commissioners (“NAIC”) and the National Conference of Insurance Legislators (“NCOIL”) filed suit in the U.S. Court of Appeals for the District of Columbia Circuit seeking to overturn Rule 151A adopted by the Securities and Exchange Commission (“SEC”) which classifies certain indexed annuities, previously regulated as insurance, as securities, and thus subjects them to federal, rather than state, regulation. read more
|
On January 16, 2009, American Equity Investment Life Holding Company (“American Equity”) issued a press release announcing that it, together with a coalition of insurance companies and independent marketing organizations, filed suit in the U.S. Court of Appeals for the District of Columbia Circuit seeking to overturn Rule 151A adopted by the Securities and Exchange Commission (“SEC”). read more
|
As we previously reported here, the American Council of Life Insurers (“ACLI”) submitted a letter to the National Association of Insurance Commissioners (“NAIC”) asking the NAIC to consider changing reserve and risk-based capital requirements that it believes are too conservative. On January 2, 2009, the NAIC issued a press release to announce that its Capital and Surplus Relief Working Group will hold a public hearing on January 27, 2009 at the Marriott Wardman Park Hotel in Washington D.C. to gather additional comments and information regarding current reserves and capital requirements. read more
|
On November 11, 2008, Frank Keating, President and Chief Executive Officer of the American Council of Life Insurers (“ACLI”), submitted a proposal to the National Association of Insurance Commissioners (“NAIC”) asking the NAIC to consider changing reserve and risk-based capital requirements that it believes are too conservative (the “Proposal”). read more
|
On December 17, 2008, the U.S. Securities and Exchange Commission (the “SEC”) voted 4 – 1 in favor of classifying equity-indexed annuities as securities, subjecting them to federal regulation. As discussed in our earlier posts here and here, the new rule, which takes effect January 12, 2011, seeks to clarify the status of indexed annuities under the federal securities laws.
|
On December 3, 2008, the U.S. federal district court for Minnesota affirmed a magistrate's denial of a motion by Sun Life Assurance Company of Canada (“Sun Life”) to amend its complaint seeking to void life insurance policies issued to John R. Paulson that were later acquired by Coventry First, LLC (“Coventry First”), The Atticus Fund, LP ("Atticus") and Orca Finance Trust ("Orca"). read more
|
Sarah Wilson, Director and Insurance Sector Leader at the FSA has given a speech on the FSA's view of life insurance. She acknowledged that the insurance sector was coming under increased attention as a result of the turbulence in financial markets but stressed that it was stronger and better placed to deal with the stressed market conditions than during the last bear market of 2003 read more
|
On November 3, 2008, the New York Insurance Department (“NYID”) issued a press release (“Release”) announcing that it will begin conducting public hearings on life settlements starting on Thursday, November 6 in Long Island.
|
|
|
On September 30, 2008, California’s Governor, Arnold Schwarzenegger, vetoed Senate Bill 1543 (“SB 1543”) aimed at regulating life settlement transactions. SB 1543, which was previously discussed here, received support from a number of trade groups including the American Council of Life Insurers, the AARP, and Life Insurance Settlement Association.
|
On September 23, 2008, at the NAIC Fall meeting in National Harbor, Maryland, the Life Insurance and Annuities (A) Committee (the "Committee") covered a number of issues with respect to viatical settlements. Specifically, the Committee discussed whether it should revise the NAIC Viatical Settlement Model Act to incorporate provisions from the NCOIL Model Act to address, among other things, the issue of stranger initiated life insurance trusts. read more
|
On September 24, 2008, the National Association of Insurance Commissioners (“NAIC”) adopted a Model Regulation on the Use of Senior-Specific Certifications and Professional Designations in the Sale of Life Insurance and Annuities (the “Model Regulation”). read more
|
Today, the AIG Task Force (“Task Force”) of the National Association of Insurance Commissioners (“NAIC’) held a public briefing during which it outlined the Task Force’s efforts with respect to overseeing AIG’s insurance operating units of the troubled insurance giant.
read more
|
|
|
On August 28, 2008, the Florida Office of Insurance Regulation and its Commissioner, Kevin McCarty, hosted a public hearing on stranger-owned life insurance (“STOLI”). STOLI, as discussed in these posts here at InsureReinsure, is a controversial type of life settlement transaction in which a policyholder receives cash compensation or other forms of consideration in exchange for taking out a life policy and transferring the policy or death benefit to a third party investor. read more
|
Earlier this month, California’s Assembly Committee on Insurance and the Appropriations Committee unanimously passed SB 1543, a bill regulating life settlements. read more
|
Today, Thursday, August 28, Edwards Angell Palmer & Dodge's Insurance and Reinsurance Department will host a webinar entitled "Insurance Implications of Climate Change". This 60 minute webinar will comprise a discussion of the global legal framework which recognizes the reality of climate change. read more
|
LOMA, an international association of over 1200 member companies, including life insurers, recently published a report analyzing the potential impact of the subprime mortgage crisis on sales of life insurance and annuity contracts. According to the report, customers under financial stress as a result of the subprime mortgage crisis are less likely to purchase life and annuity products. Therefore, insurers are likely to see a decrease in their sales numbers. read more
|
In response to concerns over the adequacy of reserves held by some charitable gift annuity programs, the New York State Insurance Department issued a notice imposing additional requirements for such reserves. read more
|
On Thursday, August 28, Edwards Angell Palmer & Dodge's Insurance and Reinsurance Department will host a webinar entitled "Insurance Implications of Climate Change". This 60 minute webinar will comprise a discussion of the global legal framework which recognizes the reality of climate change. read more
|
The Military Personnel Financial Services Protection Act, passed by Congress in 2006, prohibits insurers from entering into or renewing a contractual relationship with an agent or other person who sells life insurance on a military installation unless the insurer has implemented a system to report disciplinary actions taken by (1) the insurer or (2) any Federal or State government entity against its agents for conduct occurring on a military installation. read more
|
On May 21, 2008, we reported on Florida Senate Bill 648, then awaiting signature by Florida Governor Charlie Crist, that addressed insurable interest requirements with respect to life insurance policies. read more
|
Kansas recently enacted legislation banning stranger-originated life insurance (“STOLI”), joining 13 other states that have prohibited the practice. For previous InsureReinsure posts on STOLI, please click here, here and here.
|
On June 26, 2008, the Securities and Exchange Commission (“SEC”) published proposed Rules 151A and 12h-7 (“ Proposed Rules”). The Proposed Rules, if adopted, would clarify the status of indexed annuities (i.e. annuities for which payments to the purchaser are dependent on performance of a securities index) under the federal securities laws, and would provide insurance companies an exemption from reporting requirements under the Securities Exchange Act of 1934 (“Exchange Act”) with respect to such annuities and certain other securities issued by insurance companies that are registered under the Securities Act of 1933 (“Securities Act”) and regulated as insurance under state law.
|
Earlier this month, Hawaii Governor Linda Lingle signed into law the Life Settlement Model Act (the “Act”), which prohibits STOLI transactions, which are transactions that benefit people who have no insurable interest in the insured. The Act, which is based on the NCOIL Model Act, imposes a two-year ban on settlement transactions and provides the Hawaii Department of Commerce and Consumer Affairs with additional oversight authority over life settlement brokers and providers. read more
|
Ohio recently became the twelfth state to adopt legislation to address concerns about Stranger-Originated Life Insurance (“STOLI). For previous InsureReinsure.com posts on this topic, please click here, here and here.
|
On June 2, 2008, the National Association of Insurance Commissioners (the “NAIC”) issued a release announcing adoption of a model bulletin (the “Bulletin”) and Consumer Alert (the “Alert”) to help protect seniors from certain abusive sales practices.
|
Oklahoma has become the latest state to enact legislation regulating the life settlements industry. We previously reported on similar legislative activity in Florida and Iowa. SB 1980, also known as the Viatical Settlements Act of 2008 (the "Act"), was signed into law on May 15, 2008 and takes aim at stranger-originated life insurance (“STOLI") transactions. read more
|
Before closing its legislative session on May 2nd, the Florida House and Senate unanimously approved Senate Bill 648 (“SB 648” or the “Bill”) addressing insurable interest requirements with respect to life insurance policies. The Bill is different from the NAIC and NCOIL Viatical Settlement Models, but addresses many of the same issues surrounding stranger owned life insurance arrangements (“STOLI”). read more
|
Before closing its legislative session on May 2nd, both of Florida’s legislative chambers unanimously approved Senate Bill 2082 (“SB 2082” or the “Bill”) addressing suitability in annuity sales. The Bill is based on the NAIC Suitability in Annuity Transactions Model Regulation, as amended in 2006, which requires that life insurance companies ensure that their annuity products are marketed and sold to suitable parties. read more
|
Last week, the Iowa Senate unanimously voted (49-0) to pass Senate File 2392 as amended by the Iowa House which, if signed by the Governor, would revise Iowa’s viatical settlements act to address stranger originated life insurance (“STOLI”) transactions.
|
Following the recent trend set by states such as California, Florida and New Jersey, the National Association of Insurance Commissioners (“NAIC”) has adopted a revised version of the Unfair Trade Practices Model Act (the “Act”) that limits the circumstances in which a life insurer can deny coverage to an individual based on the individual’s lawful past and future travel.
|
On March 26, 2008, New Jersey Governor, Jon Corzine, signed into law Assembly Bill 1586, sponsored by Assemblyman Neil Cohen. The new legislation prohibits unfair discrimination by life insurance companies against individuals based on their travel plans by expanding the definition of unfair discrimination to include “failing to issue, extend, or renew a life insurance policy, or fixing the rates, terms, or conditions of the policy based on an individual's intent to travel abroad, unless the decision is based on sound actuarial principles.” read more
|
On February 15, 2008, the U.S. federal district court in Minnesota granted a motion by Coventry First, LLC (“Coventry First”) to dismiss a complaint by Sun Life Assurance Company of Canada (“Sun Life”) seeking to void a life insurance policy issued to John R. Paulson that was later acquired by Coventry First. read more
|
In a 9 - 0 decision, the U.S. Supreme Court decided on Wednesday of this week that individual participants in 401(k) retirement plans can sue plan fiduciaries to recover losses that result from mishandling of their individual retirement accounts. Until the decision in LaRue v. DeWolff, Boberg & Associates, Inc., No. 06-856, (Feb. 20, 2008) courts and commentators disagreed over whether an individual account holder could bring an ERISA action against plan fiduciaries or whether only the plan itself had standing to bring those lawsuits. read more
|
|
|
On January 10, 2008, the Illinois Division of Insurance (“DOI”) issued a consumer alert advising caution with respect to “Stranger/ Investor Originated Life Insurance” (“STOLI”) arrangements. read more
|
Executive Life Insurance Company of New York (ELNY) was placed into rehabilitation in 1991 after affiliated companies became insolvent and concerns about its future solvency arose. The rehabilitation plan adopted in 1992 involved the transfer of much of ELNY's business to another carrier; however, ELNY in rehabilitation retained substantial assets and continued payment on certain annuities, with the bulk of the payout going to structured settlement annuitants that had received long-term and/or lifetime annuities as settlements in personal injury lawsuits. read more
|
We attended the National Conference of Insurance Legislators ("NCOIL") 2007 Annual Meeting in Las Vegas, Nevada. On November 17th, the NCOIL Executive Committee unanimously adopted an amended NCOIL Life Settlement Model Act (the "Act"). The Act was first adopted in November 2000 and last updated in July 2004. read more
|
Thomas R. Sullivan, Insurance Commissioner of Connecticut, recently published notice of intent to adopt a regulation concerning military sales practices to provide uniform standards through which active duty service members of the United States Armed Forces are protected from dishonest and predatory practices in the sale of individual life insurance and annuity products. read more
|
In a recently filed lawsuit, talk show host Larry King alleges that he was deceived into selling two life insurance policies by The Meltzer Group. King is suing the firm and its principal, Alan Meltzer, for breach of fiduciary duty. read more
|
On July 26, 2007, the Internal Revenue Service issued final regulations governing Internal Revenue Code Section 403(b) plans that allow workers in public schools and certain tax-exempt organizations to set aside pre-tax money for retirement. read more
|
A bill currently pending before Congress, the Viatical Settlements Licensing Act of 2007 (the "Bill"), would regulate life settlements in Washington D.C. and require licensing of viatical settlement providers or brokers operating in the Washington D.C. region by the District’s Insurance Commissioner. read more
|
Animal Friends Insurance ("Animal Friends"), a UK nonprofit pet insurance specialist, has partnered with Liverpool Victoria to introduce a novel term life insurance product that gives vegetarians and fish-eaters an average discount of six percent on premiums. read more
|
In Adams v. Southern Farm Bureau Life Insurance, No. 98-00020-CV-CDL-4 (July 25, 2007), the Eleventh Circuit Court of Appeals affirmed the district court’s opinion that res judicata barred appellants’ claims, owing to the settlement of an earlier consumer class action against Southern Farm Bureau Life Insurance Company (“Southern Farm”). read more
|
Last week in Seattle, we attended the 2007 Summer Meeting of the National Conference of Insurance Legislators (“NCOIL”), an organization of state legislators whose main area of public policy concern is insurance legislation and regulation. read more
|
A federal district court has dismissed a complaint containing seven claims, including three RICO claims, against Coventry First LLC and several related corporate entities and principals. read more
|
The National Conference of Insurance Legislators’ (NCOIL) Long Term Care and Health Retirement Issues Committee announced that it will discuss and review potential abuses in the long term care (LTC) insurance market at the upcoming NCOIL meeting in Seattle. read more
|
On June 4, 2007, the NAIC, in plenary session, approved amendments to the Viatical Settlement Model Act. The approved amendments impact certain premium finance and life settlement transactions. read more
|
In an effort to combat the inadequacy of retirement funds for Baby Boomers, Representatives Stephanie Tubbs Jones (Democrat) and Phil English (Republican) reintroduced the Retirement Security for Life Act (H.R. 2205) on May 8, 2007 (originally introduced in 2004). read more
|