Weekly Tip: June 26th Joint Meeting Highlights

 

Weekly Tips

Insurance Compact Weekly Tip: June 26th Joint Meeting Highlights

6/29/2016

On June 26th, the Insurance Compact convened a joint meeting of the Management Committee and Commission via teleconference. In this Weekly Tip, we will share some of the highlights from the meeting.

Capping off Phase 6 of the Five-Year Review, the Management Committee and Commission voted to adopt amendments to the individual long-term care insurance Uniform Standards. The adopted amendments will become effective for filing in early October, and will apply to new filings on a going-forward basis. Filings approved under the individual Long-Term Care Uniform Standards that became effective on December 1, 2010, will remain subject to the requirements of the version under which they were approved. Be on the lookout for additional guidance from the Insurance Compact Office as the effective date for the amended Uniform Standards approaches.

The Management Committee also held a public hearing on the proposed amendments to the Uniform Standards listed under Phase 7 of the Five-Year Review. The Commission received two written comments – one from the state of Pennsylvania, suggesting a technical amendment that would strike the term “Liquidity Notice Period” from two of the Uniform Standards, and one from Northwestern Mutual regarding longevity annuities. On the 26th, the Management Committee asked the Product Standards Committee to review the submitted comments to provide feedback to the Management Committee on whether further changes should be made before final action is taken. The amendments to Uniform Standards are slated for final action at the upcoming August 5th in-person meeting.

Additionally, the Management Committee voted to expose an amendment which would add a Death Benefit Proceeds provision to the core annuity contract Uniform Standards. The proposed amendment originated from an industry suggestion and will be published on the Compact’s Rulemaking Docket for a 60-day comment period. A public hearing will be held at the in-person meeting scheduled for August 5th in Philadelphia, PA.

This month marks the 10th anniversary of the Insurance Compact’s first product filing. We would like to thank all of our filers for choosing the Compact – from those who have filed with us for the last 10 years, to those who are still working on their very first Compact filing submission. For more ways to engage with the Compact, stay tuned for our upcoming series of Weekly Tips focused on the Uniform Standard Development process.

If you have any questions about this Weekly Tip, or the Insurance Compact, please contact the Insurance Compact Office at Comments@insurancecompact.org.