Highlights From the August 5th Joint Meeting
On August 5th the Insurance Compact convened a joint meeting of the Management Committee and Commission in advance of the NAIC Summer National Meeting in Philadelphia, Pennsylvania. In this week's Weekly Tip, we will share highlights of the actions that took place during the meeting.
First, the Management Committee approved and the Commission voted to adopt amendments to four life insurance benefit standards and two annuity benefit standards, wrapping up Phase 7 of the Five-Year Review. The adopted amendments will become effective for product filings as of mid-November, and will apply on a going-forward basis only. The amended Uniform Standards will be posted to the Record shortly, and are as follows:
- Additional Standards for Graded Death Benefits for Individual Whole Life Uniform Standards
- Individual Deferred Paid-Up Non-Variable Annuity Contract Standards (Commonly Marketed as Longevity Annuities)
- Additional Standards for Private Placement Plans for Individual Deferred Variable Annuity Contracts
- Additional Standards for Private Placement Plans for Individual Variable Adjustable Life Insurance Policies
- Additional Standards for Change of Insured Benefit
- Additional Standards for Overloan Protection Benefit
The Management Committee then held a public hearing on the proposed Death Benefit Proceeds Amendment to the core annuity contract Uniform Standards, as well as proposed amendments to the Bylaws of the Interstate Insurance Product Regulation Commission. The proposed amendment to the core annuity contract Uniform Standards resulted from a request from the Insurance Compact's Industry Advisory Committee. There was no further comment or discussion on either proposed amendment at the hearing. The deadline for submitting written comments on these items is August 28th, and final action is expected to be taken during the next joint teleconference of the Management Committee and Commission on September 25th.
The Commission heard reports from the Product Standards, Finance, Rulemaking, and Communications Committees. The Product Standards Committee reported that it will now be focusing its efforts on Phase 8 of the Five-Year Review, which covers the Individual Disability Income Insurance Uniform Standards. The Management Committee also gave a green light to the Product Standards Committee to continue its discussions on how to develop Uniform Standards to handle those incidental benefits, including some like wellness benefits, which are not technically life insurance benefits and are being filed and approved in most states today. The Product Standards Committee will take a step back from the discussion draft proposal for uniform standards for incidental benefits for life insurance products in order to explore the issue more conceptually.
Finally, the Commission received an operational update from the Insurance Compact Office, including commemorating that July 2017 marked 10 years since the first product filing was approved by the Insurance Compact.
If you have any questions about this Weekly Tip, or the Insurance Compact, please contact the Insurance Compact Office at Comments@insurancecompact.org.