Rhode Island proposes to amend Insurance Regulation 29 (the “Regulation”) governing the activities of insurers and insurance producers with respect to the replacement of existing life insurance and annuity products by adding a new section to the Regulation on “twisting” and “churning” practices (the “Proposed Rule”).
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Life Insurance & Annuities
NAIC Senior Issues Task Force Held Public Hearing on Long-term Care Insurance
By Troutman Pepper Locke on
The Senior Issues Task Force (“Task Force”) of the National Association of Insurance Commissioners (“NAIC”) held a public hearing on long-term care insurance (“LTCI”) at the NAIC Fall National Meeting in Washington, DC. During the hearing, a panel of experts discussed issues impacting the LTCI industry, including the impact of the economy on LTCI sales, increases in rates by private insurers, and the exit by a number of carriers from the market. …
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NAIC Adopts Valuation Manual and Establishes Working Group
By Troutman Pepper Locke on
The National Association of Insurance Commissioners (“NAIC”) voted to adopt a Valuation Manual (the “Manual”) at its National Meeting on December 2, 2012 in Washington D.C., setting forth a principles-based approach to life insurance company reserves (known as principles-based reserving or “PBR”). Currently, insurance company reserves are calculated using formulas prescribed by state insurance laws and regulations. …
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US District Court in California Holds That an Out-of-State Group Annuity is Not Subject to California’s Individual Annuity Disclosure Requirements
By Troutman Pepper Locke on
The case involved a class action filed by an annuity beneficiary alleging that the insurer sold his mother and similarly situated plaintiffs a deferred annuity that did not comply with disclosure requirements of individual annuity contracts pursuant to California Insurance Code (“CIC”) §§ 10127.10(c) and 10127.13. …
Read More US District Court in California Holds That an Out-of-State Group Annuity is Not Subject to California’s Individual Annuity Disclosure Requirements
Ohio Court of Appeals Holds Life Insurer Has No Affirmative Duty to Search Social Security Death Master File
By Troutman Pepper Locke on
Posted in Life Insurance & Annuities, United States
In a new decision, the Court of Appeals of Ohio ruled that a life insurer is under no duty to search the Social Security Death Master File (“DMF”) to independently determine on an annual basis whether policyholders deceased prior to the insurer receiving proof of death from beneficiaries or claimants. See Andrews v. Nationwide Mutual Insurance Company, No. 97891 (Ohio Ct. App. Oct. 25, 2012). …
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Alleged Mutual Fund Kickback Case Allowed to Proceed as Class Action
Financial lines insurers may want to take a closer look at revenue-sharing agreements between pension plan administrators and the mutual funds they offer plan participants as investment options, in the wake of a Connecticut federal court’s decision to certify a class action against ING Life Insurance & Annuity Company. …
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New York Court Dismisses Madoff Claim Against Investment Advisors & Fund Managers
By Troutman Pepper Locke on
A New York State trial court recently dismissed claims by the holders of variable life insurance policies, some of whose excess cash value was invested with Bernard Madoff’s securities firm, against various investment advisors and hedge fund managers. The decision is SSR II, LLC v. John Hancock Life Insurance Company, et al., No. 652793/2011 (N.Y. Sup. Ct. – N.Y. Co. – Sept. 28, 2012). …
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California Judge Spares Insurers Heavy Fines for Alleged Unfair Acts Violations
In a case challenging the California Department of Insurance’s (CDI) accusation against life and health insurers of multiple unfair and deceptive practices in violations of the California Insurance Code and the Fair Claims Practices Regulations (FCPR), an administrative law judge ruled that the CDI had overstepped its powers deriving from the Fair Claims Settlement Practices Regulations, and particularly Section 790.03 of Insurance Code. …
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Texas Requires that Insurers Submit Long Term Care Rate Information by August 17
By Troutman Pepper Locke on
Posted in Life Insurance & Annuities, United States
On July 27, 2012, the Texas Department of Insurance (the “TDI”) issued Bulletin B-0020-12 (the “Bulletin”) requiring all companies writing individual long-term care insurance for new customers in Texas after August 1, 2012 to submit rate information to the TDI by August 17, 2012. …
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New Jersey Issues Bulletin Revising Standards for Equity Indexed Annuity Products
On December 28, 2011, the New Jersey Department of Banking and Insurance (the “Department”) issued Bulletin 11-31 (the “Bulletin”) revising standards for equity indexed annuities (EIA), which are annuity contracts with a value based on performance of a specified equity-based index (or indices). The Bulletin comes in response to the evolution of EIA product designs, and in light of prevailing low interest rates. …
Read More New Jersey Issues Bulletin Revising Standards for Equity Indexed Annuity Products