Draft Model Summaries:

Actuarial Guideline GWP – Group Term Life Waiver (Draft: 1/10/08)
The Life and Health Actuarial Task Force discussed whether to adopt the November 1, 2007 draft. Proponents of this draft stated that adoption with the experience adjustments would be a step towards a principles-based system and that the prescribed table would be in keeping with current regulatory practices. Some regulators were uncomfortable with limiting the experience adjustment to unfavorable experience only and favored the use of the table without experience. LHATF decided to revise the draft and release it for comment. To view a copy of the current draft, please visit: http://www.naic.org/committees_lhatf.htm .

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Actuarial Guideline VACARVM (Draft: 9/29/07)
The Life and Health Actuarial Task Force did not discuss this actuarial guideline during the 2008 Spring National Meeting. To view a copy of the current draft, please visit: http://www.naic.org/committees_lhatf.htm .

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Actuarial Guideline XXXIX – Reserves for Variable Annuities with Guaranteed Living Benefits
(Draft: 9/28/05)
The Life and Health Actuarial Task Force adopted revisions to Actuarial Guideline XXXIX (AG 39) on October 30, 2007. These revisions extend the current sunset date by one year to January 1, 2009. The revisions also include a release mechanism to be applied on a quarterly basis for a portion of the reserves established under the guideline. The Plenary adopted the revised Actuarial Guideline during the 2007 Winter National Meeting.

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Annuity Nonforfeiture Model Regulation (Draft: 9/20/05)
The Life and Health Actuarial Task Force developed a new model regulation to implement the changes to the Standard Nonforfeiture Law for Individual Deferred Annuities adopted in early 2003. That model revised the 3% nonforfeiture rate to allow for a constant maturity treasury rate. The model regulation contains extensive information on calculating the nonforfeiture rate for equity-indexed annuities. Work continued on the model until it was adopted in mid-September. Thereafter the parent Life Insurance and Annuities (A) Committee adopted the model at a conference call and the Plenary adopted the model at the December 2005 NAIC meeting.

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Determining Reserve Liabilities for Pre-need Life Insurance Model Regulation (Adopted)

This model regulation designates the 1980 CSO Mortality Table as the authority used to establish minimum reserves for pre-need insurance. Reserves are one of the primary measures of financial solvency and should be uniform and transparent among all states. This model allows companies that have already switched to the 2001 CSO Mortality Table to transition to the 1980 CSO over time. On January 12, 2012, all companies are required to file policy forms with the 1980 CSO as the minimum standard. The Life Insurance and Annuities (A) Committee adopted this model during a conference call held on March 24, 2008. The Plenary adopted the model regulation on March 31, 2008.

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Fiduciary Responsibility of Insurance Producers Model Act (Draft: 11/06/05)
The Producer, Company and Unauthorized Entities Unlawful Activity Working Group of the Antifraud (D) Task Force developed this model to define a producer’s fiduciary responsibility to hold funds received or collected as a producer in a separate account. It should be helpful to states that do not have a law that prohibits producers from commingling funds. This model is intended to assist law enforcement and be a criminal deterrent in the producer community. The Task Force adopted this model in September 2004. The parent Market Regulation and Consumer Affairs (D) Committee received the model and referred it to the Producer Licensing (D) Working Group for further review. This Working Group adopted the model during a November 2005 interim meeting and forwarded it on to the D Committee. The Market Regulation and Consumer Affairs (D) Committee should begin discussing this model at the 2007 Spring National Meeting.

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Filing Procedures for Compliance with the Provisions of the Terrorism Risk Insurance Program Reauthorization Act of 2007
The Property and Casualty (C) Committee adopted the proposed bulletin on March 31, 2008. This bulletin addresses changes to the Terrorism Risk Insurance Program (TRIP) that will occur in light of the enactment of the Terrorism Risk Insurance Program Reauthorization Act of 2007 (TRIPRA). To view a copy of the current draft, please visit: http://www.naic.org/topics/topic_tria.htm .

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Guidelines for the Filing of Workers' Compensation Large Deductible Policies and Programs (Large Deductible Filing Guidelines) (Draft: 3/20/07)
The Large Deductible Study Implementation (C) Working Group discussed some minor revisions suggested by an interested party. The Working Group intends to consider adopting these guidelines during a conference call to be held in April, 2008. To view a copy of the current draft, please visit: http://www.naic.org/committees_c_wctf_large_deductible.htm .

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Independent Adjuster Licensing Guideline (Draft: 9/25/07)
The Producer Licensing (D) Working Group has completed drafting this guideline. The Working Group intends to hold a conference call prior to the 2008 Summer National Meeting and present the Guideline to the Market Regulation and Consumer Affairs (D) Committee at the Summer National Meeting. To view a copy of the current draft, please visit: http://www.naic.org/committees_d_producer_licensing.htm .

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Insurance Regulatory Class Action Reform Model Act (Draft: 8/17/06)
The Class Action Insurance Litigation (C) Working Group of the Property and Casualty Insurance (C) Committee did not discuss this proposed model during the 2006 Winter National Meeting. The purpose of this model is to provide guidance regarding the certification of class actions as well as motions arguing that the court lacks jurisdiction because either the state insurance commissioner has exclusive or preliminary jurisdiction or the party seeking certification failed to exhaust the available administrative remedies. The Working Group voted to discharge itself at the Winter Meeting and it is not anticipated that work will continue on this proposed model.

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Life and Health Insurance Guaranty Association Model Act (# 520) (Draft: 3/10/07)

The Receivership Model Act Revision Working Group discussed changing the current coverage limit. After much discussion, the working group changed the annuity and governmental retirement benefit plan coverage limits to $250,000. The Working Group also changed the coverage limits for long-term care to $300,000. The Working Group requested that interested parties submit suggestions on those coverage limits for which votes have not been held. To view a copy of the current draft, please visit: http://www.naic.org/index_committees.htm .

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Long Term Care Insurance Model Regulation (#641) (Draft: 8/30/06)
The Health Insurance and Managed Care (B) Committee adopted revisions to the Long Term Care Insurance Model Regulation. These revisions address the “cross-border” issue – how insureds access benefits when they purchase the policy in one state and later move to a state that does not have the same provider licensing requirements. The B Committee postponed adopting these amendments until after revising the producer training section of the Long Term Care Insurance Model Act. The Executive/Plenary Committee will consider adopting these revisions at the 2006 Winter National Meeting.

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Medical Malpractice Closed Claim Reporting Law (Draft: 4/7/08)
The Property and Casualty (C) Committee discussed the confidentiality provisions in this proposed model. The intention of this model is to help ensure the availability of closed claim data necessary for thorough analysis of issues associated with malpractice claims. The C Committee hopes to adopt the model by the 2008 Summer National Meeting. To view a copy of the current draft, please visit: http://www.naic.org/index_committees.htm .

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Model Act on Custodial Agreements and the Use of Clearing Corporations (#295)
The FHLB Custodial Subgroup discussed proposed revisions to this model to allow FHLB Banks to be included in the definition of a custodian. The Subgroup adopted a recommendation to the Examination Oversight (E) Task Force to create a guideline change to the model allowing FHLB Banks to meet the definition of an authorized custodian of insurance company securities. To view a copy of the recommendation and the current draft, please visit: http://www.naic.org/committees_e_examover.htm .

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Model Regulation on Custodial Agreements and the Use of Clearing Corporations (#298)
The FHLB Custodial Subgroup discussed proposed revisions to this model to allow FHLB Banks to be included in the definition of a custodian. The Subgroup adopted a recommendation to the Examination Oversight (E) Task Force to create a guideline change to the model allowing FHLB Banks to meet the definition of an authorized custodian of insurance company securities. To view a copy of the recommendation and the current draft, please visit: http://www.naic.org/committees_e_examover.htm .

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Model Regulation to Define Standards and Commissioner’s Authority for Companies Deemed to be in Hazardous Financial Condition (# 385) (Draft 2/20/08)
The Hazardous Financial Condition Model Revisions Subgroup discussed and exposed proposed revisions to this model. The current draft of the model incorporates proposed changes received by the Examination Oversight (E) Task Force through a survey conducted in 2005. To view a copy of the Request for Model Law Development, please visit: http://www.naic.org/index_committees.htm .

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Model Regulation to Implement the NAIC Medicare Supplement Minimum Standards Model Act (# 651)

The Accident and Health Working Group discussed revising this model but decided to put this model on hold while the proposed changes to the Social Security Act are being considered. To view a copy of the Request for Model Law Development, please visit: http://www.naic.org/index_committees.htm .

Natural Catastrophe Risk: Creating A Comprehensive National Plan (Draft: 8/8/07)
The Catastrophe Risk (C) Working Group discussed a possible timeline for a vote on this white paper. The Working Group agreed to expose the current draft for comment and hold a meeting on May 30, 2008. The Working Group's primary concern is that the paper is technically correct and that it is carefully vetted before it is adopted. The Working Group is accepting comments until April 30, 2008. To view a copy of the current draft, please visit: http://www.naic.org/committees_c_catastrophe.htm .

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Personal Lines Regulatory Framework White Paper (Draft: 9/8/06)
The Personal Lines Market Regulatory Framework (Ex) Working Group reviewed comments received on this white paper. The purpose of this paper is to discuss the choices state legislatures face when developing an appropriate regulatory framework for personal lines insurance products. The Working Group considered a suggestion that the regulatory framework should not abandon the concept of front-end regulation of rates and forms. In addition, the Group discussed whether to implement flex-rating as well as maintain multiple options for legislatures to consider. The Working Group intends to hold a conference call in January of 2007 to discuss this white paper in depth.

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Producer Training - Policies Issued Under Qualified State Long-Term Care Insurance Partnership ("Qualified Partnership") (Draft 9/9/06)
The Health Insurance and Managed Care (B) Committee adopted a revised version of a model bulletin to allow states to inform producers about the producer training requirements regarding policies issued under qualified state long-term care insurance partnership programs. The Long-Term Care Working Group amended this bulletin during the 2006 Fall National Meeting to address all resident producers “authorized” to sell, solicit or negotiate long-term care insurance. The Working Group clarified that the model bulletin addressed resident producers because, presumably, this bulletin would be sent by the state’s insurance commissioner to producers in the state. Under the Deficit Reduction Act (DRA), every producer is expected to know about long-term care insurance and its relationship to their state’s Medicaid program.

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Property and Casualty Insurance Guaranty Association Model Act (Draft:9/21/07)
The Receivership and Insolvency (E) Task Force adopted revisions to this model on March 30, 2008. The Financial Condition (E) Committee agreed to expose the revised model for 30 days and consider adopting the model during an interim conference call. To view a copy of the current draft, please visit: http://www.naic.org/index_committees.htm .

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Senior Citizens Beware – Question Credentials of So-Called “Senior Specialists”; Insurer and Producer Bulletin (Draft: 3/6/08)
The Life Insurance and Annuities (A) Committee discussed a draft insurer and producer bulletin and a draft consumer alert. This bulletin was developed in response to a hearing held by the Senate Special Committee on Aging in September, 2007. The bulletin and the alert are for use by state insurance departments to make seniors aware as well as caution insurers and producers about the use of senior designations in the sale of insurance and annuity products. It is alleged that individuals, some of whom are insurance producers, are using these new “senior” designations as a means to mislead senior citizens as to the individual's investment and financial expertise. To view a copy of the current draft, please visit: http://www.naic.org/committees_a.htm .

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Standard Nonforfeiture Law for Life Insurance (# 808) (Draft: 1/30/07)

The Life and Health Actuarial Task did not discuss this model during the Spring National Meeting. To view a copy of the current draft, please visit: http://www.naic.org/index_committees.htm .

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Standard Valuation Law (#820) (Draft: 1/7/08)
The Life and Health Actuarial Task Force discussed the several proposed amendments to the Standard Valuation Law. The Task Force adopted several of these amendments and deferred others. The Task Force is accepting comments on a new draft containing the adopted amendments until May 9, 2008. To view a copy of the current draft, please visit: http://www.naic.org/index_committees.htm .

Third Party Administrator Guidelines (#90) (Draft: 3/20/07)
The Large Deductible Study Implementation (C) Working Group discussed significant changes to the previous draft. In particular, the Working Group discussed presenting two versions of the TPA Guidelines. The first would add workers' compensation, the second would contain many of the same amendments but without workers' compensation. To view a copy of the current draft, please visit: http://www.naic.org/committees_c_wctf_large_deductible.htm .

Unauthorized Transaction of Insurance Criminal Model Act (Draft: 9/10/06)
The Antifraud (D) Task Force and the Market Regulation and Consumer Affairs (D) Committee adopted this model during the 2006 Fall National Meeting. This model establishes criminal penalties for unlawful insurance or health coverage transactions. Before adopting this model, the Producer, Company, Unauthorized Entities and Unlawful Activity Working Group added a “pursuant to Section 4” sentence to Section 5 and removed the reference to Section 3 in Section 5. The Working Group also added a “knowingly standard” requirement to Section 4. The Executive/Plenary Committee will consider adopting these revisions at the 2006 Winter National Meeting.

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Unfair Trade Practices Act (#880) (Draft: 3/27/08)
The Life Insurance and Annuities (A) Committee continued discussing the issue of life insurance travel underwriting. After the Committee reviewed the New York/Maine and Florida proposals during a March 24, 2008 conference call, members of the committee worked with interested parties to reach a compromise. After considering minor revisions, the Committee adopted the travel underwriting revisions. To view a copy of the current draft, please visit: http://www.naic.org/index_committees.htm .

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Uniform Health Carrier External Review Model Act (Draft: 3/14/08)
The Health Insurance and Managed Care (B) Committee discussed this proposed new model. The Regulatory Framework (B) Task Force adopted this model during a conference call held on March 14, 2008. This new model creates a uniform single-option approach for processing, reviewing and making a determination on requests for external review. The B Committee intends to hold a conference call prior to the 2008 Summer National Meeting to discuss any concerns and consider adopting this model. To view a copy of the current draft, please visit: http://www.naic.org/index_committees.htm .

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