The National Association of Insurance Commissioners (NAIC), Kansas City, Mo., announced that it will hold a public hearing on the emergence of Stranger Originated/Owned Annuities.
“The hearing will focus on the suspect practice of targeting seniors and terminally ill patients by inducing them to purchase an annuity largely for the benefit of investors or intermediaries,” the NAIC said in a press release.
“State regulators need to closely examine the conditions of this evolving marketplace,” said Thomas R. Sullivan, Chair of the NAIC Life Insurance and Annuities Committee and Connecticut Insurance Commissioner. “We are determined to address how individuals are being affected by these new transactions and whether new or modified current laws or regulations are necessary to protect consumers. We have an intense curiosity for which we intend to examine the existence and extent of these practices.”
The hearing will include industry representatives, state regulators and consumers. The date and location of the hearing will be announced as soon as details are confirmed.