Topic: Life Insurance & Annuities

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”). 

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. 

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. 

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.