PAR Response Times Extended

Posted on January 31, 2008 by Cailie Currin

I received the annexed message from Ms. Nelligan of the New York State Insurance Department this morning.   This will be greatly appreciated!  It is always nice to know that when concerns are voiced to the Department, they are heard and can result in changes in policy! 

After hearing the concerns expressed by the industry at the last policy forms meeting with respect to responding to the Department's post approval review letters, we are changing the response time to our letters from 15 calendar days to 30 calendar days. However, if the post approval review involves only minor issues we may at the discretion of the reviewer request a response time of only 15 calendar days. Please note that the new response time will be reflected in any post approval letters going forward.

The 15 day calendar response time remains in effect for any outstanding letters already received.

Your dissemination of this information would be appreciated. Thanks,

Kathy
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CT Ins. Dept. Issues Bulletin on Longevity Annuities

Posted on January 29, 2008 by Cailie Currin

On January 10, 2008, the Connecticut Insurance Department issued Bulletin S-11 on "longevity annuities", or annuities without death benefits prior to annuitization. 

The Bulletin includes required sales practices , which include a requirement that a similar deferred annuity with a death benefit be offered and that 3 different illustrations be generated on a case-by-case basis.  Policy form requirements are also included. 

The Department indicates that a deferred annuity without a death benefit will only be approved when it complies with the Bulletin.  The Bulletin does not apply to group annuities purchased under a retirement plan or deferred comp plan established or maintained by an employer or an employee organization. 

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Superintendent Dinallo to Chair NAIC Committee

Posted on January 28, 2008 by Cailie Currin
The NAIC announced on Friday that NY Superintendent Eric Dinallo will chair the Life Insurance and Annuities Committee.    The NYSID issued a press release, which is posted on their website.   In addition, an article was posted on Insurancenewsnet and on the NAIC's website. 
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NY Flesch Score Certification Posted

Posted on January 18, 2008 by Cailie Currin

In 1982 the NYSID sent a letter to companies that included a Flesch score certification that the Department wanted used for NY submissions.  That certification had been made available on an ad hoc basis after that, but this week, the NYSID posted it on their website.  It is now available in a fill-able PDF file.  The second page is available as a word document.   Now that these are easily available on-line, it is likely that the Department will expect that they be used more consistently.  Therefore, I recommend that any other forms currently being used be replaced with these. 

It is great to see them available to all on the website! 

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References to charges that do not apply

Posted on January 4, 2008 by Cailie Currin

In a recent discussion with attorneys in NY's Life Bureau, I was advised that in post-approval reviews the NYSID is seeing - and not liking! - policy forms that refer generally to charges, but in other places within the form note that they do not apply.  I believe that in many cases the general reference is an attempt to use generic, national pages and the specific reference is often a NY-specific provision making clear that a certain charge does not apply in NY.  For example, one reference might say that "charges, if any, will be deducted"  in a particular situation.    In another location within the policy form there would be an explanation of the specific charges and when they do and do not apply.  If no charges would in fact be deducted in NY at the time the general statement refers to, the attorneys are now very likely to object on PAR.  

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