Start Of Producer Fingerprint Pilot Project Is Imminent

However, Wes Bissett, representing the Independent Insurance Agents and Brokers of America, said that access to the fingerprints through a public database raised privacy concerns for his groups members.

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On another matter, changes affecting nonforfeiture provisions for limited pay long term care contracts were advanced by regulators at the NAIC meeting.

The changes were made to a long term care model regulation and an LTC guidance manual. One change, developed by Florida regulator Frank Dino, requires that a paid-up benefit be available to a consumer if the proportionate amount of payments made is at least 40%. The payment percentage is determined by taking the number of payments required and dividing it by the number of periods paid. Thus, for instance, if it was a 20-pay product, and 10 payments were made, there would be a 50% ratio. Since the percentage was at least 40%, the 40% trigger would be multiplied by 90% of the benefits in the policy. A contract holder would be entitled to 36% of whatever benefits the contract stated. It operates like a reduced paid-up contract, Dino explained.

Changes to the manual will reflect this change and others in order to provide better insight into regulatory requirements for LTCI, he added.

Reproduced from National Underwriter Edition, March 25, 2005. Copyright 2005 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.