“The NAIC investigated itself with an attorney who used to work for the insurers,” said the Life Insurance Settlement Assoc. chief.
Doug Head, executive director of the Life Insurance Settlement Association, today criticized the findings of the National Association of Insurance Commissioners’ review of its model act.
“So we are asked to believe that the ‘investigation’ was done, and properly done, based on a press release?”
Last week, the NAIC announced that an independent investigation by Lynn McCreary, a partner at Bryan Cave LLP, found that the adoption of the group’s Viatical Settlements Model Act was unbiased and not subject to undue influence. The rule, which addresses issues in sale of life insurance on the secondary market, would extend to five years, from two, the settlement contestability period for insurers.
The investigation arrived on the heels of accusations of conflicts of interest within the Kansas City, Mo. group. Last fall, consumer group representatives feared that Jim Poolman, a former North Dakota insurance commissioner, was getting campaign contributions from industry participants while he oversaw the development of the model act. Mr. Poolman is also the former chair of the NAIC’s life insurance and annuities group.
Mr. Head contested the findings and process of the NAIC’s investigation, saying that the group wouldn’t provide the findings of its report. “[Ms. McCreary] only had to see if the [development process] complied with the NAIC’s rules,” he added. “They went through the formality of approving a model, but whether there were other forces impinging on the outcome was never investigated.” Mr. Head also said that his group was never contacted during the investigation.
The NAIC would not provide its report to the press, saying that it was “an internal publication.”
“It’s a little like George Bush investigating Guantanamo and getting attorney general [Alberto] Gonzales to say that everything is okay,” Mr. Head said.
An NAIC spokewoman responded that the report is condfidential because members were intervened.
"Bryan Cave LLP is a leading national business and litigation firm. As a
partner in the firm, Lynn McCreary brings a depth and breadth of
experience and expertise to her position. We have every confidence in
Bryan Cave, as well as in the integrity and unbiased approach that Ms.
McCreary brought to this investigation,”
said Cathy Weatherford, NAIC Executive Vice President and CEO, in a statement.
