Regulators resolve to check up on products for illustration integrity
March 25, 2024 by John Hilton
State insurance regulators are tired are trying to keep up with life insurers that quickly skirt attempts to tamp down illustrations.
Instead of further rulemaking, regulators are going directly to the products. The Indexed Universal Life Illustration Subgroup is “looking at specific company examples” of both IUL and annuities that use illustrations, said Fred Anderson of the Minnesota Department of Commerce, chairman of the subgroup.
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Wink’s Moore on the Market: Illustration integrity.
“Clearly there needs to be a reengineering of illustration regulations for a consistent approach for both index annuities and life insurance,” said Birny Birnbaum, executive director of the Center For Economic Justice.
However, no surprises here that the National Association of Insurance Commissioners (NAIC) thinks they don’t need to re-open the illustration regulation.
Indexed life didn’t even exist when the life insurance illustration model regulation was developed. We need to overhaul the reg! -sjm