Since the cancellation of its Summer National Meeting due to Hurricane Irene, members of the
Yesterday via conference call, the NAIC Joint Executive/Plenary Session met to consider outstanding agenda items.
Among the actions taken on the call, the NAIC made determinations regarding the way annuities are sold. Specifically, NAIC adopted amendments to Annuity Disclosure Model Regulation (#245) intended to increase uniformity, improve disclosure and reduce consumer confusion with regard to the purchase of annuities. The rules provide insurers uniform guidance on developing disclosure information and also address the increasing use of annuity illustrations during the sales process.
Additionally, NAIC voted to adopt an insurer bulletin on Stranger-Originated Annuity (STOA) Transactions that encourages insurance companies to establish safeguards to prevent or limit exposure to STOA transactions.
Lastly, the NAIC adopted a new Consumer Guide to Earthquake Insurance that “promotes earthquake awareness and facilitates financial preparedness through the understanding of” earthquake insurance.
“I would like to thank the members and staff of the NAIC for working so hard to keep the organization on schedule despite the challenges of Hurricane Irene this summer,” NAIC President and Iowa Insurance Commissioner Susan Voss said in a statement. “It is always best when we can convene as a group face-to-face, but when things do not go as planned, it is important to stay focused and flexible.”
