SAN FRANCISCO–Five model laws drafted by the National Association of Insurance Commissioners were moved along toward a final vote at the NAIC meeting here.
Among the models that will advance are: the Military Sales Practices model regulation; amendments to the Viatical Settlements model act; the Medical Malpractice Closed Claim Reporting model law; changes to the Long Term Care Insurance model act, which includes producer training requirements; and the Uniform Health Carrier External Review model act.
The models advanced during an executive committee session yesterday under a new NAIC procedural format. The meeting was convened to decide solely whether the models should continue to have model status or not. Models that are ready for consideration for full adoption by the NAIC will be considered before the executive and plenary session today.
Under the new NAIC procedure initiated by Walter Bell, NAIC president and Alabama insurance commissioner, work products have to come before the executive committee to decide whether the drafts should be considered as model law to be advanced for uniform adoption by all states or viewed simply as guidelines.
In making his case for consideration of the Military Sales Practices draft as a model, John Oxendine, Georgia insurance commissioner, said the work met a national standard and was a topic of national importance. The model seeks to make sure that military service people are not inappropriately sold life insurance contracts.
“This is important legislation and regulation for military folks,” said Sandy Praeger, NAIC president-elect and Kansas insurance commissioner.
Kentucky Insurance Director Julie McPeak said the Viatical Settlement model met the criteria of uniform adoption with 35 states already having some version of the model in place and had significant resources devoted to its development.
She said that whether or not the model should be adopted on its merits could be discussed during the joint executive/plenary session.
Two models, the Standard Nonforfeiture Law for Life Insurance and the Standard Valuation model law, were deferred by the executive committee. The reason, according to Ms. McPeak, is that these models are going to be part of a broader framework created by the principles-based working group.
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