The model act covers the secondary market for life insurance, including disclosures for viatical settlements brokers.
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.
