NAIC Discusses Senior Designations

June 29, 2008 at 04:00 PM

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Regulators received comment from insurers and consumer advocates as they pursue the development of model regulation that will provide oversight on the use of senior-specific certifications and professional designations.

During the discussion of the Life Insurance and Annuities "A" Committee of the National Association of Insurance Commissioners, Kansas City, Mo., the following recommendations were offered:

–There is a need for guidance on illustrations.

–That such work should be separate from the issue of senior designations.

–That misleading designations in general, and not specifically to seniors, should be prohibited so that a structural problem rather than a narrower issue can be addressed.

–That language should comport with language in a regulation developed by the North American Securities Administrators Association, Washington, so that there will be uniformity in oversight of both insurance and securities producers.

–That language not be so narrow that it would prevent the use of company titles such as senior vice president, and hence result in companies having to re-title employees.

A new draft of the model was expected to be released on June 26.

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