NAIC found 'unbiased' on viatical model

The model act covers the secondary market for life insurance, including disclosures for viatical settlements brokers.
JAN 10, 2008
An investigation by a law firm found the process behind the development of the National Association of Insurance Commissioners’ Viatical Settlements Model Act to be unbiased. Lynn McCreary, a partner at Bryan Cave LLP, performed the independent examination and concluded that the model was “accorded open debate and unbiased consideration” and that the adoption of the act by the NAIC’s life insurance and annuities committee was unbiased. The model act covers issues in the secondary market for life insurance, including improved disclosures for viatical settlements brokers and a five-year lookback period in which insurers could contest settlements, as well as continuing education requirements for viatical brokers. The inspection follows allegations of conflicts of interest within the Kansas City, Mo. group: Last September, consumer group representatives expressed concerns that former chair of the life insurance and annuities Jim Poolman was too close to the life settlements industry. Specifically, they feared Mr. Poolman, a former North Dakota insurance commissioner, was getting campaign contributions from industry participants while he led the development of the model act. Mr. Poolman had resigned from his insurance commissioner post in August with 16 months left in his term, and now runs a private consulting firm in Bismarck, N.D. But the examination of the committee’s meeting minutes, plus interviews with people in the committee, revealed otherwise. “All of the interview subjects were very forthcoming and candid about their responses,” Ms. McCreary said in a statement. “It was apparent to me this model was the subject of extensive and lively debate.” The group will continue to focus on having its model introduced and then adopted by the states, NAIC president and Kansas insurance commissioner Sandy Praeger said in a statement.

Latest News

Ex-Edward Jones advisor gets three-year prison sentence for stealing from widow
Ex-Edward Jones advisor gets three-year prison sentence for stealing from widow

John S. Winslow, 57, was indicted just over a year ago for his scheme to steal from an elderly client.

Vestmark, Hamachi push AI further for advisor portfolio intelligence
Vestmark, Hamachi push AI further for advisor portfolio intelligence

Hamachi's new model portfolio partnership and an industry-first solution from Vestmark join the growing wave of AI tools for wealth managers.

Advisor moves: Cetera's enterprise channel draws experienced Osaic duo in California
Advisor moves: Cetera's enterprise channel draws experienced Osaic duo in California

Meanwhile, LPL attracted a five-advisor team managing $380 million in Kansas, while a veteran with stripes from Morgan Stanley, UBS, and Fidelity has joined Prime Capital Financial.

Dynasty CEO teases 'Virtual Shirl' as RIA execs debate AI's workforce impact
Dynasty CEO teases 'Virtual Shirl' as RIA execs debate AI's workforce impact

At Goldman Sachs’ RIA conference, Dynasty’s Shirl Penney said an AI clone trained on his emails and speeches could be the first of “hundreds of digital employees.”

Captrust adds $1.25B Pennsylvania firm in latest push into private wealth
Captrust adds $1.25B Pennsylvania firm in latest push into private wealth

The top-ranked RIA by total AUM continues to scale its wealth management arm, bringing its Pennsylvania presence to five offices.

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

SPONSORED Durability over scale: What actually defines a great advisory firm

Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline