Interstate Compact National Standards (EX) Working Group
March 29, 2008
The Interstate Compact National Standards (EX) Working Group met on Saturday,
March 29, 2008.
During this meeting, the Working Group:
- Received a report from Fran Arricale (Interstate Insurance Product Regulation
Commission-IIPRC) about the IIPRC work plan for the adoption of future standards.
The Working Group needs to know what the IIPRC priorities are so the Working
Group can be sure to develop those standards that the IIPRC needs. The IIPRC
assigned the highest priority to completing the life and annuity standards
in Appendix A and would like to move on to group life and annuity standards.
The IIPRC list of standards priorities will be posted on the IIPRC website
www.insurancecompact.org
- Received a report about the Disability Income Subgroup's work. John Rink
(NE) chairs this Subgroup. Since the 2007 Winter National Meeting, the Subgroup
has held several conference calls working through the Individual Disability
Income Insurance Policy Standards. The Subgroup anticipates completing the
standards prior to the 2008 Summer National Meeting. The Subgroup's next scheduled
conference call is Thursday, April 17, 2008.
- Received a report about the Annuities Subgroup's work. Brad Harker (PA)
chairs this Subgroup. In January, the Subgroup completed its work on the core
standard: Individual Immediate Non-Variable Annuity Contract Standards. Since
then, the Subgroup has been working on benefit features to the "core"
standards. The Subgroup has forwarded several standards to the IIPRC Product
Standards Committee for its consideration, including the Standards for Forms
Used to Provide Tax Qualified Plan Provisions for Individual Annuity Contracts
and Additional Standards for Waiver of Surrender Charge Benefit (to be incorporated
into the Individual Deferred Variable Annuity Core Standards). The Subgroup
is currently working on the Index-Linked Annuity Payment Adjustment Benefit
(to be incorporated into the Individual Immediate Non-Variable Annuity Contract
Standards). It hopes to finish work on this benefit feature during its next
scheduled conference call on Wednesday, April 16, 2008.
- Received a report about the Life Subgroup's work. Malinda Shepherd (KY)
chairs this Subgroup. The Subgroup has forwarded several standards to the
IIPRC Product Standards Committee for its consideration, including the Standards
for Forms Used to Provide Tax Qualified Plan Provisions for Individual Life
Insurance Policies, the Standards for Forms Used to Exclude Policy Coverage
Based on the Underwriting Process and the Standards for Riders, Endorsements
or Amendments Used to Effect Individual Life Insurance Policy Changes. The
Subgroup's next scheduled conference call is Wednesday, April 2, 2008. On
this call the Subgroup will continue discussing the Return of Premium Standards
proposal.
- Received a report about the Long-Term Care Subgroup's work. Since the 2007
Winter National Meeting, the Subgroup has held conference calls working on
the Long Term Care Initial Rate Filing Standards. Due to the recent retirement
of the Subgroup chair, the Working Group will be appointing a new chair for
the Subgroup in the near future.
- Discussed some options for developing group life and annuity standards.
The difficulty arises with how to account for the different state eligible
group statutes. Miriam Krol (American Council of Life Insurers-ACLI) shared
industry's thinking about a way to begin to develop group standards that allows
for the variance among the state eligible group statutes.
Action Items:
None