States have been off to the races to place in the artificial intelligence insurance regulatory Grand Prix. The NAIC adopted the Model Bulletin on the Use of AI Systems by Insurers, which some states have drafted on to adopt...more
A string of putative class actions has been filed against life insurance companies for allegedly violating section 20(b) of Illinois’ Genetic Information Privacy Act (GIPA) by using applicants’ family medical history in...more
1/22/2024
/ Consumer Insurance Products ,
Genetic Materials ,
Health Insurance ,
Illinois ,
Insurance Industry ,
Life Insurance ,
Medical History ,
Personally Identifiable Information ,
Putative Class Actions ,
Statutory Violations ,
Underwriting
Regulators Hit Jackpot: Off-Channel Communications -
Several years before announcing the first “off-channel” communications enforcement action, the SEC and FINRA cautioned broker-dealers and investment advisers about...more
10/11/2023
/ Annuities ,
Artificial Intelligence ,
Best Interest Standard ,
Breach of Contract ,
Class Action ,
COBRA ,
Consumer Financial Products ,
Consumer Insurance Products ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Employment Litigation ,
Federal Arbitration Act ,
Financial Contracts ,
Financial Industry Regulatory Authority (FINRA) ,
Financial Services Industry ,
Health Insurance ,
Insider Trading ,
Insurance Fraud ,
Insurance Litigation ,
Insurance Regulations ,
Interlocutory Appeals ,
Investment Management ,
Life Insurance ,
Money Market Funds ,
Mutual Funds ,
NAIC ,
NLRA ,
NLRB ,
No-Action Letters ,
Non-Compete Agreements ,
NYDFS ,
Regulatory Requirements ,
Retirement ,
Robocalling ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
State and Local Government ,
Wage and Hour
On July 17, the Innovation, Cybersecurity, and Technology (H) Committee of the National Association of Insurance Commissioners released its exposure draft of the NAIC’s model bulletin on insurers’ use of algorithms,...more
10/11/2023
/ Algorithms ,
Artificial Intelligence ,
Consumer Insurance Products ,
Cybersecurity ,
Innovation ,
Insurance Regulations ,
Life Insurance ,
Machine Learning ,
NAIC ,
Popular ,
Proposed Regulation ,
Reporting Requirements ,
Risk Management ,
Technology
Worried that the cards may be stacked against certain consumers and producers, the New York Department of Financial Services (DFS) released a circular letter and filing guidance note on July 17 to remind insurers of their...more
Colorado DOI Summer Reading for Life Insurers -
On May 26 — just ahead of the Memorial Day weekend — the Colorado Division of Insurance (DOI) issued for public comment a second draft of its proposed “Governance and Risk...more
The Colorado Division of Insurance announced this week that it will host another stakeholder meeting regarding unfair discrimination in insurance practices on April 6, 2023, from 10:00 - 11:00 a.m. MT. Unlike prior meetings,...more
Following completion of its 2022 educational paper, the NAIC’s Accelerated Underwriting (A) Working Group (AUWG) moved to the second part of their charge — draft guidance for the states. During their call on February 22, the...more
Following North Dakota, New Mexico, and Washington’s actions in 2021, there is a renewed effort by states to freshen up their rebating provisions to allow value-added products and services.
Kansas came alive first by...more
On November 5, 2021, the Oregon Division of Financial Regulation issued an invitation to comment on proposed filing requirements for life and health insurance advertisements. The centerpiece of the proposed ad filing...more
Just in time for the holidays, the Innovation and Technology Task Force (Innovation TF) and the NAIC Executive (EX) Committee adopted revisions to Section 4(H) of the NAIC Unfair Trade Practices Act (Model 880). ...more
As the year of COVID-19 closes, NAIC groups are adopting their charges for 2021. Especially notable are the following: LATF’s Indexed Universal Life Illustration Subgroup will:
This group will finalize its white paper on...more
It looks as if 2021 will be a busy year as states move to implement the NAIC 2020 revisions to the Suitability in Annuity Transactions Model Regulation (Model 275), or other duty of care measures. The below chart outlines the...more
The NAIC Virtual Summer National Meeting marked that it is time to get back to school for a number of annuity and life disclosure and illustration initiatives. Both regulators and insurers will need to sharpen their pencils...more
The NAIC and the Interstate Insurance Product Regulation Commission (“Compact”) are cooking up various initiatives that will impact life and annuity issuers. Below is the spread of the different issues....more
The rebating drafting group of the NAIC’s Innovation and Technology (EX) Task Force (“Innovation TF”) has been busy all summer working on proposed changes to section 4(H) of the NAIC’s Unfair Trade Practices Act (UTPA). On...more
While everyone was working from home, the NAIC's Innovation and Technology (EX) Task Force (Innovation TF) was busy creating proposed new game rules on rebating. ...more
6/26/2020
/ Comment Period ,
Consumer Insurance Products ,
Financial Services Industry ,
Insurance Regulations ,
Life Insurance ,
NAIC ,
Rebates ,
Sandbox ,
Unfair or Deceptive Trade Practices ,
Unfair Trade Practices Act ,
Value-Added Services
The comments by regulators during the NAIC Artificial Intelligence (EX) Working Group (AI WG) calls provide insight into regulators' views on insurers' use of artificial intelligence and may foretell areas for future...more
On February 13, 2020, the NAIC Executive Committee adopted revisions to the Suitability in Annuity Transactions Model Regulation (#275) (Revised Suitability Model), which incorporates a best interest standard of conduct for...more
Several NAIC groups continued addressing issues related to innovation in the life insurance industry as follows...more
2/12/2020
/ Acceleration ,
Artificial Intelligence ,
Big Data ,
California Consumer Privacy Act (CCPA) ,
Consumer Insurance Products ,
Consumer Privacy Rights ,
Data Collection ,
Data Management ,
Innovation ,
Insurance Regulations ,
Licensing Rules ,
Life Insurance ,
NAIC ,
Personal Data ,
Third-Party Relationships ,
Underwriting ,
Vendors ,
Working Groups
For decades, life insurance has been viewed as just providing benefits to those named as the beneficiary. As we enter the new decade, insurers are changing this narrative....more
On December 30, 2019, the Life Insurance and Annuities (A) Committee approved a revised Suitability in Annuity Transactions Model Regulation (Revised Suitability Model), ending a flurry of activity over the past year....more
2/11/2020
/ Annuities ,
Best Interest Standard ,
Conflicts of Interest ,
Consumer Insurance Products ,
Disclosure Requirements ,
Duty of Care ,
Insurance Regulations ,
Life Insurance ,
NAIC ,
Required Documentation ,
Safe Harbors ,
Securities and Exchange Commission (SEC) ,
Suitability Rule ,
Supervisory Guidance
Arizona jumped out front of the pack with the introduction of Senate Bill No. 1557, titled "Annuity Transactions; Requirements," which would amend Arizona's suitability requirements for annuity transactions. Senate Bill No....more
Since mid-2018, the NAIC’s Innovation and Technology (EX) Task Force (Innovation TF) has been considering how state anti-rebating laws impede insurers and producers’ ability to offer innovative products and services to...more
Like a game of whack-a-mole, new or existing NAIC groups are being tasked to consider the various regulatory issues that are popping up from insurance innovation....more
10/11/2019
/ Annuities ,
Artificial Intelligence ,
Best Practices ,
Big Data ,
Consumer Insurance Products ,
Consumer Privacy Rights ,
Financial Services Industry ,
Insurance Regulations ,
Life Insurance ,
NAIC ,
Regulatory Requirements ,
Regulatory Standards ,
Sandbox ,
Underwriting