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
By  Bloomberg
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

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.