Life Insurance & Annuities

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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 New York Seeks Comments on Draft Regulation Prohibiting Use of Discretionary Clauses in Life and Health Insurance Policies

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. 

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Read More NAIC Provides Details Regarding Upcoming Hearing on Stranger Owned Annuities

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. 

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Read More NAIC Announces Intent to Hold Hearing on Stranger Owned Annuities

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. 

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Read More HK: Rising Demand for Yuan Policies

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”). 

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Read More Connecticut Proposes New Regulation to Protect Seniors

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. 

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Read More UK: Trustees’ Duties in Employee Life Assurance Schemes

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. 

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Read More Minnesota Department of Commerce Revokes Producer License in an Insurable-Interest Case

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. 

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Read More NAIC Moves Towards Principles Based Reserving for Life Insurance

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). 

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Read More New York Announces Public Hearing on Life Insurance and Annuity Sales Practices