Business Transfer Model Could Apply to Life, Health and Annuity Business
December 3, 2019 by Allison Bell
Some state insurance legislators want to let an insurer pass full responsibility for unwanted blocks of business — including life insurance, health insurance and annuity business — on to another insurer, without having to sell the entire company or go through a state-supervised receivership.
Members of the National Council of Insurance Legislators (NCOIL) are planning to discuss an Insurance Business Transfer Model Act draft Dec. 12, in Austin, Texas, at NCOIL’s annual meeting.
NCOIL is a group for state lawmakers who have an interest in insurance. It has no direct ability to set or change states’ insurance laws, but state lawmakers may start with NCOIL models when drafting their own bills.
The new business transfer model draft would let one insurer pass a block on to another insurer, after an independent expert assessed the possible effects of the deal, the insurer’s state insurance regulator approved the deal, and a court approved the deal.
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