Life Settlement News

Fitch Ratings does not expect that the National Association of Insurance Commissioners’ (NAIC) efforts to address issues in its Risk Based Capital (RBC) formula related to downgraded residential mortgage-backed securities (RMBS) will ultimately have a material impact on Fitch’s analysis or the ratings of U.S. life insurance companies. While Fitch reviews the NAIC RBC ratio as part of its ratings analysis, Fitch believes its review of insurer capital strength will not be materially impacted by the adjustments expected by the NAIC because Fitch takes a multi-faceted approach to capital analysis as compared to that used by regulators.

The National Association of Insurance Commissioners will hold a public hearing to discuss a proposal that would ease reserve requirements for life insurance companies.

The Life Insurance Finance Association applauds the adopted amendments to The National Conference of Insurance Legislators (NCOIL) Life Settlements Model Act, which was adopted unanimously, reflecting the collaboration of all parties.

The Life Insurance Settlement Association (LISA) today renewed its objections to the recent amendments to the NAIC Viatical Settlement Model Act, after it was revealed that both the primary author of the model and its key supporter, the American Council of Life Insurance (ACLI), knew that the model act failed to address the problem of stranger originated life insurance (STOLI). LISA has repeatedly raised concerns about the highly unorthodox process and closed-door tactics which were used to develop and adopt the amendments and has held firm that the model does not stop what the NAIC has already identified as the improper manufacturing of life insurance.

The Life Insurance Settlement Association announced its strong support today for the recently introduced bill in the District of Columbia City Council to regulate life settlements in that jurisdiction. This legislation, introduced at the request of the D.C. Department of Insurance, Securities, and Banking, comprehensively protects life insurance policyowners by imposing tough licensing requirements on settlement providers and brokers and thorough oversight of interactions with consumers, including an important new set of disclosures and affirmations designed to buttress insurable interest requirements and prevent STOLI (stranger originated life insurance).

The National Association of Insurance Commissioners (NAIC) has adopted amendments to its Viatical Settlements Model Act. “This action was taken despite the fact that the model was poorly drafted, did not meet the stated objectives of the regulators and was expedited without having fully considering the issues raised by all industry sectors,” according to Scott J. Cipinko, executive director of the Life Insurance Finance Association (LIFA).
In addition, the adopted changes do not recognize how the life insurance industry and the secondary markets actually operate. “This is just unsettling. The rights of the consumers were not actually considered, and the changes will impair the rights of many life insurance consumers that the Model Act was aimed at protecting,” continued Cipinko.

The National Association of Insurance Commissioners (NAIC) today adopted amendments to the Viatical Settlements Model Act during the Association’s Summer National Meeting in San Francisco.

An Association for Advanced Life Underwriting official would like to see regulators at the National Association of Insurance Commissioners change the NAIC’s proposed life settlements model revision.

Consumer and industry must benefit equally in life settlement legislation. That was the message behind a recent web-based seminar focusing on the National Association of Insurance Commissioners (NAIC) Viatical Settlement Model Act governing the life settlements field, which brought together recognized legal, financial and industry experts.

The NAIC Model Act - How Proposed Revisions Could Impact Life Settlements
April 26, 2007
1:00 - 2:30 PM (EST)