Howard Metzenbaum

Why is this flimflammery allowed to continue? Where are the laws to prevent companies from misleading people? — Senator Metzenbaum

1993 – GOV – When Will Policyholders Be Given The Truth About Life Insurance?

1992 – GOV – Consumer Disclosure of Insurance

1993 – GOV – When Will Policyholders Be Given The Truth About Life Insurance?

1993-Vol. IB – NAIC – Metzenbaum Letter – 2 pages 810-811

https://www.c-span.org/video/?18391-1/insurance-insolvencies

Sen. Metzenbaum, known for his contentiousness on the floor of the Senate, addressed a luncheon audience at the National Press Club. He discussed the recent spate of financial crises in the insurance industry, such as the financial collapse of Executive Life Insurance company, which has left hundreds of thousands of policy holders in California and New York unsure of the state of their insurance coverage.

Sen. Metzenbaum criticized state insurance regulators for failing to adequately maintain knowledge of the financial affairs of the insurance agency. He claimed insurance laws written by the insurance industry, inadequate staffing, infrequent examinations, inadequate capital regulation, and lack of coordination between the states are the reasons for the instability of the insurance industry.

He recounted several “accounting gimmicks” used by the insurance industry to appear financially solvent despite true financial instability

“Furthermore, the NAIC was being pushed by Senator Howard Metzenbaum who wanted to accuse the regulatory structure of not doing its job and then to bring regulation up to the federal level.” Mr. Frank S. Irish <ASB>
1998, Professional Standards Affecting Life Actuaries, Society of Actuaries MS. LINDA M. LANKOWSKI: I think any way that we can make illustrations more
understandable to the public is certainly going to help us. We’ve seen the problems that
have occurred when Senator Howard Metzenbaum (D–OH) was given an illustration with
a vanishing premium, and he had absolutely no idea that he had bought a policy that was
not paid up in four years. It caused many problems for the industry; it caused many
problems because the press got involved, and the press doesn’t understand the products as
well as it thinks it does.

1995 – PRACTICAL ILLUSTRATIONS AND NONFORFEITURE VALUES, Society of Actuaries – 14p

First to comment was Sen. Howard Metzenbaum (D-Ohio),
He cited a report issued by the NAIC 13 years ago that reached many of the same conclusions, but the disclosure system it found to be “seriously flawed” was still in place today.

1993-3

NAIC Legislative Outlook and Update
January 20 1994
Page 9 Senator Howard Metzenbaum D-OH who has reintroduced legislation to create
federal regulatory agency responsible for insurance is in his final months in office Last year the
Ohioan announced that he would not run for reelection in 1994 He also introduced 1619 the
Insurance Protection Act of 1993 While Senator Metzenbaum has used his chairmanship of the
Judiciary Subcommittee on Antitrust Business Rights and Monopolies to examine number of
insurance-related issues including life policy illustrations assumption reinsurance and guaranty
finds his subcommittee does not have jurisdiction over insurance The subcommittee that does
have jurisdiction the Commerce Science and Transportation Subcommittee on Consumer has
not announced any plans for hearings on the Metzenbaum bill Indeed Senator Richard Bryan
D-NV that panels chairman will probably wait to see what action ifany the House might take
on insurance regulation
With strong possibility of congressional hearings looming in the background Senator
Metzenbaum has written to the Securities and Exchange Commission SEC regarding the sales
practices of the Metropolitan Life Insurance Company Senator Metzenbaums letter of
December 17 is at Attachment number of states are examining the marketing of life
insurance products as ifthey were retirement pension plans Indeed the NAIC has formed the
EX Special Committee on Metropolitan Life to pursue these issues Senator Metzenbaum had
planned to hold hearing on this issue on January 24 but has canceled it for later date His staff
contemplates hearing with company officials as well as state insurance regulators testifjing