Life Insurance and Annuities (A) Committee

The mission of the Life Insurance and Annuities (A) Committee is to consider issues relating to life insurance and annuities, review new life insurance products and establish priorities of the Life and Health Actuarial Task Force.

2008 Charges

Ongoing Support of NAIC Programs, Products, or Services:

1. Review model laws adopted in 2003 and not revised since that time. Essential
2. Oversee development of the principles-based reserving system. Essential
3. Analyze issues related to underwriting practices and/or policy exclusions in life insurance policies relating to lawful travel to foreign countries and draft guidelines for interpretation of the Unfair Trade Practices Act or model legislation to address the issues, as necessary. Essential
4. Review and revise, as necessary, the Buyer's Guides to Fixed Deferred Annuities in conjunction with Appendix A of the Annuity Disclosure Model Regulation and the Life Insurance Buyer's Guide in conjunction with Appendix A of the Life Insurance Disclosure Model Regulation. Important
5. Oversee changes and provide technical assistance as appropriate for the production of the Market Share Reports for the Top 125 Life and Fraternal Insurance Groups and Companies by State. Essential
6. Consider the development of a new model regulation on the use of senior-specific certifications and professional designations in connection with an offer, sale or purchase of life insurance or an annuity to seniors or the provision of advice to seniors in connection with an offer, sale or purchase of life insurance or annuity; and in developing the model regulation, the Committee may consult with the market regulation committee, as it considers appropriate. Important
7. Review and consider changes to the Suitability in Annuity Transactions Model Regulation to improve the regulation of annuity sales and to provide insurers uniform guidance in developing agent training, supervision and monitoring standards in order to better protect annuity consumers from unsuitable sales and abusive sales and marketing practices. Important

New Objectives and Goals (representing new NAIC programs, services, or initiatives):

1. Explore the feasibility of developing a new model law or revising a current model law or regulation that would permit insurers to implement policy loan programs that would offer policy loans to policy owners in an amount that exceeds a policy's cash surrender value and direct the Life and Health Actuarial Task Force to evaluate the merits of such programs from an actuarial perspective, including examining potential underwriting, risk-based capital and statutory accounting issues by working with accounting and solvency committees the Task Force considers appropriate. Important