Life Insurance & Annuities

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Regulatory Landscape

In 2026, the NAIC Life Insurance and Annuities (A) Committee, chaired by Iowa and vice chaired by Michigan, is largely focusing on annuity sales practices, including annuity buyers guides, suitability, and annuity illustrations. Of particular interest to the life and annuity industry is the formation of the Life Insurance and Annuities Illustrations (A) Working Group (Working Group) chaired by Minnesota. The Working Group’s current charge is to “evaluate concepts for improving life insurance and annuity illustrations and disclosures, and consider revisions to relevant NAIC models or develop other guidance where feasible and appropriate.” The Working Group has asked for input on how to ensure that indexed annuity illustrations give consumers reasonable expectations, after regulators observed materials suggesting annual returns of 10–25% for multiple years. The comment record — including responses from industry trades, actuarial bodies, consumer advocates, and vendors — strongly suggests that current practices around indexed annuity illustrations and disclosures will be revisited. The Working Group is considering short-term and long-term approaches designed to ensure consumers receive reasonable expectations for indexed annuity returns at the point of sale.Read More NAIC Signals Potential Tightening of Annuity Illustration Practices

The Surplus lines market has traditionally been a method for insurance placement available to property and casualty products only, although states are increasingly opening up other lines of insurance to the nonadmitted market. For example, a growing number of states have either expressly or indirectly allowed for accident and health coverage to be written through the surplus lines market, and the National Association of Insurance Commissioners released guidance earlier this year advising the states on how to effectively legislate for the expansion of insurance lines that may be written on a surplus lines basis.
Read More LL Surplus Lines Series (Entry 16): Expert Analysis – Disability Insurance in the Surplus Lines Market and Recent Legislative Updates

Having concluded an investigation into New York life insurers’ underwriting guidelines and practices, the New York Department of Financial Services has issued Insurance Circular Letter No. 1 (2019) to advise insurers of their statutory obligations regarding the use of external consumer data and information sources in underwriting for life insurance.
Read More New Guidance on Insurers’ Use of Big Data and Algorithms in New York

The Florida Supreme Court Pruco advisory opinion, Wells Fargo Bank, N.A. v. Pruco Life Ins. Co., 200 So. 3d at 1203 & 1206-07, to the United States Eleventh Circuit Court of Appeals held that an insurer may not challenge the validity of a Florida life insurance policy, even on…
Read More The Pruco Florida Supreme Court decision has been legislatively reversed by a recent amendment to the Florida Viatical Settlement Act

Florida has recently adopted amendments to its Viatical Settlement Act.

One of the new provisions, Section 626.99292 Notice to life insurance policyholders, provides:

“(1) A life insurer shall provide an individual life insurance policyholder with a statement informing him or her that if he or she is considering making changes…

Read More New Notice Requirement for Insurers under Florida’s Viatical Settlement Act

Florida has recently adopted amendments to its Viatical Settlement Act.

One of the new provisions, Section 626.99287 Contestability of viaticated policies, provides as follows:

(2) Except as hereinafter provided [certain life changing events, such as death of a spouse, divorce, retirement from full time employment, terminal or chronic illness, mental…

Read More Florida may have outlawed the secondary sale of policies if at any time during the five year period post issuance there was a loan secured by the policy

Florida has recently adopted amendments to its Viatical Settlement Act.

One of the new provisions, Section 626.9911 (9), defines a prohibited stranger-originated life insurance practice as:

(9) “Stranger-originated life insurance practice” means an act, practice, arrangement, or agreement to initiate a life insurance policy for the benefit of a third-party…

Read More Florida may have outlawed legitimate premium finance lending

Last week, the New York Department of Financial Services (“NYDFS”) promulgated a new regulation 11 NYCRR 48, aimed at limiting the amount by which life insurance premiums can be raised as to policies issued in the state.  In particular, the regulation allows the NYDFS to review any increase and to…
Read More New York Issues Regulation Aimed at Curtailing Life Insurance Premium Hikes