1989-2
1989-2
Financial Services and Insurance Regulation (EX) Task Force – 1989-2
5. Report of the Financial Services and Insurance Regulation (EX) Task ForceCommissioner William Hager (Iowa) presented the report noting that the task
force had adopted amendments to the Model Act Relating to Unfair Methods
of Competition and Deceptive Acts and Practices in the Business of Insurance
to address the issue of insurance agents holding themselves out as financial
planners and to require disclosure of fees charged.
11. Report of the Life Insurance (A) Committee
Commissioner Harold Yancey (Utah) presented the report of the Life
Insurance (A) Committee. He noted that the Life Cost Disclosure (A) Task
Force had adopted the Optional Form of the Life Insurance Disclosure Model
Regulation with Yield Index and had recommended that the task force be
disbanded. He noted that the Product Development (A) Task Force had
amended the disclosure requirements in the Life Insurance Disclosure Model
Regulation and the Universal Life Insurance Model Regulation concerning
interest-sensitive products She further noted that the
amendments would require disclosure to consumers if fees were to be
charged in addition to commissions for the sale of insurance.
The chair then called for comments. Jack Burbidge (IDS Life Insurance Co.),
chair of the advisory committee, noted that the advisory committee had not
met since May 19 and that, therefore, it would be impossible to speak for the
group. It was his understanding, however, that the advisory committee was
generally in favor of the amendments, but did worry that the amendments as
proposed could conflict with some states’ insurance consultants laws. He
noted that 27 states have consultant laws which are not uniform and which
could be in conflict with the amendments as proposed to the Model Unfair
Trade Practices Act. He noted that he had suggested an amendment to the
exposure draft proposal (Proceedings, 1989, vol. I, pp. 85-86) in a June 2
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