FOR IMMEDIATE RELEASE

REGULATORS REVIEW CONSUMER DISCLOSURES ON RETAINED ASSET ACCOUNTS

SEATTLE (Aug. 15, 2010) — The National Association of Insurance Commissioners’ (NAIC) newly created Retained Asset Accounts (RAA) Working Group held a meeting to review the use of RAAs by insurance companies and to study whether appropriate consumer protections are in place. The working group is composed of members of the NAIC’s Life Insurance and Annuities Committee and the Market Regulation and Consumer Affairs Committee.

The working group heard from consumer and industry groups, in addition to representatives from the National Organization of Life and Health Insurance Guaranty Associations and the National Conference of Insurance Legislators. During the meeting, insurance regulators asked questions, including:

• What disclosures are given to consumers;
• Whether consumers understand settlement options; and
• Whether RAAs are protected by state guaranty funds.

“We appreciate today’s thoughtful exchange of information regarding this form of life insurance claims settlement option,” said Thomas R. Sullivan, co-chair of the working group and Connecticut Insurance Commissioner. “Through the NAIC, state regulators consistently work together to create sound public policy and we intend to make sure consumers have appropriate disclosure surrounding these benefits.”

“We know there have been relatively few consumer complaints about RAAs, but it is our desire to make sure consumers have as many choices as possible and that all payment term options are easy to understand,” said Roger Sevigny, co-chair of the working group and New Hampshire Insurance Commissioner.

The working group also distributed a consumer alert on RAAs.
Click HERE to view the alert.

About the NAIC

Formed in 1871, the National Association of Insurance Commissioners (NAIC) is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and five U.S. territories. The NAIC has three offices: Executive Office, Washington, D.C.; Central Office, Kansas City, Mo.; and Securities Valuation Office, New York City. The NAIC serves the needs of consumers and the industry, with an overriding objective of supporting state insurance regulators as they protect consumers and maintain the financial stability of the insurance marketplace. For more information, visit www.naic.org.

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