The National Association of Insurance Commissioners, Kansas City, Mo., will formally establish at its upcoming meeting in Seattle a special working group to examine a life insurance claims settlement practice involving the use of retained asset accounts (RAA). This effort will specifically include a focus on consumer disclosure issues. The working group will be comprised of members of the Life Insurance and Annuities Committee and the Market Regulation and Consumer Affairs Committee.
The working group will hold its first meeting at the NAIC Summer National Meeting in Seattle on Sunday, Aug. 15. The working group will be co-chaired by Roger Sevigny, NAIC immediate past president and New Hampshire insurance commissioner and Thomas R. Sullivan, NAIC Life Insurance and Annuities Committee chair and Connecticut insurance commissioner.
“We want consumers to have as many choices as possible in how they receive their claims payments, but we also want to make certain the terms of those payments are fully disclosed in language that is clear and easy to understand,” said Jane L. Cline, NAIC President and West Virginia insurance commissioner.
In addition to the joint working group, regulators working through the Financial Condition Committee will be considering enhancements to the reporting requirements for life insurance products.