Life Insurance and Annuities (A) Committee
December 3, 2007

The Life Insurance and Annuities (A) Committee met on Sunday, Dec. 3, 2007.

During this meeting, the Committee:

• Adopted its Nov. 27, 2007 conference call minutes.

• Discussed the draft consumer alert and insurer and producer bulletin on the use of senior designations in the sale of annuities to seniors. The Committee decided to distribute the drafts for comment.

• Discussed the revised Suitability Certification template offered by the ACLI. The Committee decided that the revised template was consistent with the relevant supervision provisions of the NAIC Suitability in Annuity Transactions Model Regulation.  The Committee adopted a motion to forward the revised template back to the Market Conduct Handbook (D) Working Group for its consideration for inclusion in the NAIC Market Regulation Handbook.

• Discussed comments recently received on the current draft of proposed travel underwriting revisions to the Unfair Trade Practices Act. During the Committee’s Nov. 27, 2007 conference call, the Committee decided to revisit its decision to pursue a dual-option approach to addressing the foreign travel underwriting issue. The Committee decided to try once again to reach consensus on a singular state-based approach. The Committee agreed to reopen the comment period on the current draft until Jan. 10, 2008 to give Committee members additional time to submit comments. After this comment period ends, NAIC staff will circulate all of the comments and the current draft with a new comment deadline for interested parties.

• Received the report of the Consumer Guides Working Group. The Working Group is continuing to meet. It decided to focus first on the Annuities Buyer’s Guides. Once it completes that work, the Working Group will turn to the Life Insurance Buyer’s Guide.

• Received the report of the Life and Health Actuarial Task Force report. The Task Force is continuing its work on the revisions to Standard Valuation Law and the drafting of the Valuation Manual. The Task Force completed the drafting review of the revisions to the Standard Valuation Law and will expose a new draft on a conference call later in December. The Task Force did not finish the drafting of the Valuation Manual, but the Task Force Subgroups will continue that effort in 2008 by conference call with the goal of completing the work by the 2008 Spring National Meeting. The Task Force also has planned several conference calls during the next quarter to work on several projects, including possible revisions to a new proposed actuarial guideline for establishing reserves for variable annuities (AG VACARVM) and a proposed model regulation and changes in Actuarial Guideline XXV to address issues with mortality experience on pre-need life insurance.

Action Items:

1. Adopted its Nov. 27, 2007 conference call minutes.
2. Adopted a motion to distribute for comment the draft consumer alert and insurer and producer bulletin on the use of senior designations in the sale of annuities to seniors.
3. Adopted a motion to forward the revised ACLI Suitability Certification Template proposal back to the Market Conduct Handbook (D) Working Group for its consideration for inclusion in the NAIC Market Regulation Handbook.
4. Received the report of the Consumer Guides Working Group
5. Received the report of the Life and Health Actuarial Task Force.

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