Life Insurance & Annuities

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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. 

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Read More New Jersey Issues Bulletin Regarding Annuity Form Filing and Suitability Requirements

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. 

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Read More New York Superintendent Eric Dinallo Discusses NAIC’s Variable Annuity Regulations

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 NAIC and NCOIL File Suit to Overturn SEC Rule Classifying Indexed Annuities as Securities

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 Suit Filed to Overturn SEC Rule Classifying Indexed Annuities as Securities

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. 

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Read More NAIC to Hold Public Hearing on Reserve and Capital Relief Proposal

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”). 

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Read More NAIC Considers Reserve and Capital Relief Proposal for Life Insurers

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. 

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Read More SEC Votes to Regulate Indexed Annuities

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 Federal Court Reaffirms Holding Regarding “Mutual Intent” in Insurable Interest Case

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 

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Read More UK: FSA’s View of Life Insurance