NASAA/NAIC

NASAA/NAIC Joint Regulatory Insurance Products Study Committee.

1980-2, Attachment 2, 
1981-1
1981-2
1982-1
1982-2

See NASAA/NAIC Joint Insurance Products Regulatory Study Committee Position Paper drafted in Phoenix, Arizona,February 27, 1981 (the “Phoenix Position Paper”).

1982-1

1980-2

13. NASAA/NAIC Joint Regulatory Insurance Products Study Committee.

The committee received and adopted the report of the NASAA/NAIC Joint Regulatory

Insurance Products Study Committee and approved Director Ratchford ‘s request to appoint

Director Low to the Study Committee. The Executive Committee also adopted a motion

renaming the Study Committee the “Task Force on Inter-relationship Between Federal and

State Securities and Insurance Regulations.” The committee expanded the scope of the

task force’s charge by directing it to monitor and repon on securities issues as they may

relate to insurance products and insurance regulations including those items contained in

the NAIC priorities. The committee in its direction emphasized the general nature of this

charge.

 

NASAA/NAIC Joint Regulatory  Insurance Products (EX) Study Committee

The  NASAA/NAIC  Joint  Regulatory  Insurance  Products Study Committee  met  today, June 18, in

the Statler  Room of the  Denver  Hilton  at  2:00  p.m.  A  quorum  was present consisting of  the

 following:  Richard  Malmgren,  (Co-Chaii-man), John  F.  Archer,  William  8.   Brady,  Michael 

Unger,  all of  NASAA and  Robert  L   Ratchford  Jr., (Co-Chairman), Edward Birrane Jr., E. V.

“‘Sonny” Omholt, William H. L..Woodyard  Ill, all of  NAIC.                                     .

 

After co-chairman  Ratchford  welcomed  the  committee  to  the  NAIC’s summer  meeting, the 

committee  had a general dis­ cussion  on  possible  areas that the committee  would review in  its

deliberation. It  was the  general understanding ihat the committee  would  look  at  certain 

activities  and  products in  both  the insurance and  securities industry  that  may lead  to

questions of either the need for regulations or the  possibility of regulatory overlap.

 

Both the  NASAA and  the  NAIC committee Members agreed to  have the  first working session

scheduled for August 13-14, 1980 •in  Wisconsin. A general education  process is anticipated  where

representatives of  both the securities and  insurance industries will make  presentations to  the 

committee on  various  products being marketed by the industry. The meeting on the  13th will be 

open to  the  public. The meeting on the 14th will be closed to  the  public. The presentations may

identify marketed products that mayor may not fall within the regulations of a state’s insurance or

securities laws.

 

The  committee  determined  that_ future sessions  at  which  regulatory  policy  would  be 

discussed  would  be  closed.  Any f’mal  recommendations of  the  committee  however,  would  be 

subject  to  full  disclosure  to  the  insurance  and  securities industries and would be subject

to  their comments.

 

The meeting was adjourned at approximately 3:00  p.ih.

NASAA/NAIC Joint Regulatory Insurance Products Study Committee

 

1. Discussed the committee’s understanding that they would consider activities and products in both the insurance and

securities industry that mily need either regulation or may have regulatory overlap.

2. Scheduled a public meeting for August 13 and a closed meeting for August 14, 1980.

3. Adopted position that after the August 13 meeting, future meetings at which regulatory policy is discussed would

be closed except that f’mal recommendations would be public and subject to comments.

The Task Force on the Interrelationship between Federal and State Securities Laws and Insurance

Regulation is about to undertake some joint discussions with its counterpan from the North American

Securities Administrators Association (NASAA).

 

1981-1

(b) Heard report of the NASAA/NAIC Joint Regulatory Insurance Products Study Committee.

1982-1

STATEMENT OF THE AMERICAN COUNCIL OF LIFE INSURANCE

BEFORE THE NASAA/NAIC JOINT REGULATORY INSURANCE

PRODUCTS STUDY COMMITTEE, ATTACHMENT ONE-A, August 31, 1981

STATUTORY PROVISIONS RELATING TO UNFAIR TRADE PRACTICES

OF INSURANCE COMPANIES IN VARIOUS STATES

Statement of the NAIC Submitted to the Securities and Exchange Commission, File No. 57-742 p. 16-20

OUTLINE OF EXISTING INSURANCE REGULATION, ATTACHMENT ONE-B

To: NASAA-NAIC Insurance Committee

From: Professor Joe Long

NASAA/NAIC JOINT REGULATORY INSURANCE PRODUCTS

STUDY COMMITTEE

Burlington, Vermont

October 18-20, 1981

 

1982-2

15. NASAA/NAIC Joint Committee
The revised report of the NASAA/NAIC Joint Regulatory Products Study Committee was
adopted as amended (Attachment Two). The amendment substituted a resolution for the
position paper adopted by the Joint Committee in Phoenix (Attachment Two-A).

 

LIFE COST DISCLOSURE (A) TASK FORCE
Oklahoma City, Oklahoma
April 5, 1982 Commissioner Faudree reported the existence of some fundamental differences with regard to the regulation of new life
products within the NASAA/NAIC joint committees, The two committees have not been able to resolve their differences
and have, therefore, decided not to continue their joint relationships. He also stated that the NASAA committee may now
have been dissolved. 1982-2
Oklahoma City, Oklahoma
April 6, 1982
  1.  Report on Joint NASAA/NAIC Committee
    The chairman brought the members of the task force up to date on the main issues discussed at the October 1981 meeting
    in Burlington, Vermont. At that meeting the joint committee decided to suspend all further activities because of fundamental
    differences between the NASAA members and the NAIC members on the issue of the regulation of new life insurance
    products. Commissioner Omholt noted that while the NASAA part of the joint committee had been dissolved soon
    thereafter, it will probably be revived in the near future.
3. Report on the Study of Securities Laws and Their Application to Life Insurance
Commissioner Foudree indicated that the task force has not pursued this item since suspension of the Joint NASAA/NAIC
Committee’s activities at the Burlington, Vermont meeting. He suggested that the task force should study the state insurance
laws to decide whether changes are needed in view of the new life products being sold. To facilitate such a study, the task force adopted a motion that the NAIC staff contact all the states to ascertain what administrative and/or enforcement
activities have been undertaken with regard to the new life products. Philip R O’Connor, Illinois insurance director, noted
that on Wednesday, April 6, 1982, he planned to present to the Executive Committee an Illinois Insurance Department
report on the universa1 life type products, He agreed to provide copies of this report to task force members who indicated
interest in receiving it. 1. Report of the Activities of Joint NASAA/NAIC Committee
The chairman also noted that the task force met independently of the joint
committee on October 19 and 29 to discuss possible approaches to the
regulation of new and innovative life insurance products such as universal life.
The chairman briefly summarized universal life and indicated the importance
of studying such products and, if necessary, developing safeguards to protect
consumers.
In summary,
the insurance regulators on the committee felt that the NAIC and NASAA
positions on the regulation of new life insurance products are so
fundamentally different that they do not presently lend themselves to
reconciliation.