This entry updates our March 24, 2010 posting.
The NAIC issued a press release earlier this month announcing its intent to hold a public hearing on the emergence of stranger originated/owned annuity transactions (“STAT”), but did not specify the date or location of the hearing. On March 28, 2010, the NAIC issued a second release providing additional details about the public hearing. According to the second release, the hearing will be held in Washington, DC on Thursday, May 20, 2010, and will focus on the practice of marketing annuities to seniors and terminally ill patients for the benefit of investors or intermediaries. Specifically, the hearing will examine the following questions:
- Are STATs lawful?
- How do they affect insurable interest?
- Is there enough consumer protection in current model laws and regulations?
- If there is not, how should the models and regulations be developed or tightened?
The hearing will include testimony from consumers, state regulators and industry representatives.
We will continue to monitor this topic and provide further updates on InsureReinsure.com.