Because many products sold by life insurers have become investment productsand insurers compete with nationally regulated entitiesthe National Association of Insurance Commissioners (Kansas City) is moving to create a set of interstate regulations for certain life products.
The initiative, titled CARFRACoordinated Advertising Rate and Form Review Authorityaims to create a national, state-based system of regulation that provides for uniform standards and a single point of filing for several insurance lines. Currently, 22 states have joined CARFRA, which covers some life products, disability and annuities.
However, the American Council of Life Insurers (ACLI, Washington, DC) responded to the CARFRA draft indicating that it was "concerned that long-term-care insurance (LTCI) was not included." ACLI noted that "LTCI is a retirement product and...companies selling LTCI do compete with other institutions."
Terri Vaughan, NAIC president and Iowa insurance commissioner, says the NAIC is now looking at LTCI. "Our attention has been focused on long-range plans to develop a model law...for life disability income and annuity and long-term-case products," she says.
Greg MacSweeney is editorial director of InformationWeek Financial Services, whose brands include Wall Street & Technology, Bank Systems & Technology, Advanced Trading, and Insurance & Technology. View Full Bio