Subgroup on Life Advertising Issues - (EX3) - NAIC

  • Subgroup on Life Insurance and Annuities, 1987-2
  • 1987-2, NAIC Proceedings - Market Conduct Surveillance (EX3) Task Force - April 12-13, 1987
    • 1. Report of Subgroup on Life Insurance and Annuities
      • The report of the Subgroup on Life lnsurance and Annuities was given by Tony Schrader.
      • Mr. Schrader noted that the Model Regulation Concerning the Sale of Life Insurance Products and Annuities has been forwarded to the advisory committee for comment.
      • The task force had decided in Orlando that the model also be referred to the Life lnsurance (A) Committee for comment.
      • The advisory committee will make a report to the A Committee at the Summer National Meeting.
      • Depending on the outcome of the report, final action may be taken by the task force at that time.
    • 2. Report of Subgroup on Life Advertising Issues
      • Dick Rogers gave the report of the Subgroup on Life Advertising Issues.
        • He noted that the task force in Orlando adopted for exposure amendments to the NAIC Model Rules Governing the Advertising of Life Insurance.
      • Mike Monette (Colonial Penn Group), Chairman of the Life and Health Subgroup of the advisory committee, commented that he had been in contact with the Society of Chartered Life Underwriters regarding the amendments and desired to forward them on for consideration
        • Mr. Monette then offered the report of the advisory committee regarding both the annuity and advertising issues (Attachment Nine-A).
  • 1988-2, NAIC Proc. - MARKET CONDUCT SURVEILLANCE (EX3) TASK FORCE
    • 5. Report of Subgroup on Life Advertising Issues
      • Dick Rogers, as chair of the subgroup, called upon Tony Spano (American Council of Life Insurance) to speak to amendments to the NAIC Model Rules Governing the Advertising of Life Insurance.
        • Mr. Rogers noted that amendments to the model had been adopted in December 1987 but that technical amendments were expected.
      • Mr. Spano submitted a written report entitled "Statement on Behalf of the American Council of Life Insurance to the NAIC Market Conduct Surveillance (EX3) Task Force, June 13, 1988" - (Attachment Two-3p).
        • Mr. Spano summarized the report stating that the amendments he proposed (attached to his report) involve a method known as the "range approach" which would govern the use of sales illustrations.
      • Mr. Rogers thanked Mr. Spano for his report and moved that the report be received and that the amendments be submitted for exposure at this time for consideration at the December 1988 national meeting.
      • The task force then heard from William Albus (National Association of Life Underwriters) who commented that if the so-called "range approach" were adopted, it would not necessarily be beneficial.
        • While he asked to reserve further comment as the proposal is further considered, the NALU was opposed to the amendments.
        • However, Mr. Albus noted his support for the current model and support for its continued adoption in the jurisdictions.