Insurers mark significant regulatory shift
June 16, 2016 by Arthur D. Postal
WASHINGTON — The reserve requirements for universal life insurance with secondary guarantees and term life insurance products will shift to a more flexible evaluation system under a recent decision made by the National Association of Insurance Commissioners (NAIC).
The new, so-called “principles-based reserving system” marks the most significant change in regulating life insurers since before World War II, according to Scott Harrison, executive director of the Affordable Life Insurance Alliance.
This group, based in Washington, D.C., has been working on the issue since 2005, Harrison said. The Alliance has three members: Lincoln Financial, Pacific Life and John Hancock. “There was huge skepticism that this could be accomplished,” Harrison said.
Click HERE to read more… LifeHealthPro articles require free registration to view
